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HRM-Edit final - Lecture notes of the course

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Human Resource Management, 15e (Dessler)

Chapter 1 Introduction to Human Resource Management

1) The basic functions of the management process include all of the following EXCEPT
.
A) planning
B) organizing
C) outsourcing
D) leading

2) Which of the following is the person responsible for accomplishing an organization's

goals by managing the efforts of the organization's people?
A) manager
B) entrepreneur
C) generalist
D) marketer Answer: A
3) Which of the following includes five basic functions—planning, organizing, staffing,
leading, and controlling?
A) a job analysis
B) strategic management
C) the management process
D) adaptability screening Answer: C

4) Which function of the management process requires a manager to establish goals and
standards and to develop rules and procedures?
A) planning
B) organizing
C) staffing
D) leading Answer: A
5) Claire spends most of her time at work establishing goals for her staff of fifty
employees and developing procedures for various tasks. In which function of the management
process does Claire spend most of her time?
A) leading
B) controlling
C) organizing
D) planning Answer: D

6) Jolene, a manager, delegates the authority for a project to Lee, her subordinate. Jolene
is most likely involved in which function of the management process?
A) staffing

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B) organizing
C) motivating
D) leading Answer: B
7) When managers use metrics to assess performance and then develop strategies for
corrective action, they are performing the function of the management process.
A) planning
B) leading
C) controlling
D) organizing Answer: C

8) Which function of the management process includes selecting employees, setting

performance standards, and compensating employees?
A) organizing
B) planning
C) motivating
D) staffing Answer: D

9) Larry, a manager at a commercial real estate firm, has established a monthly sales
quota for his sales team. Which basic function of management best describes Larry's actions?
A) planning
B) organizing
C) controlling
D) staffing Answer: C

10) is the process of acquiring, training, appraising, and compensating employees,

and attending to their labor relations, health and safety, and fairness concerns.
A) Labor relations
B) Human resource management
C) Behavioral management
D) Organizational health and safety management Answer: B

11) In the management process, which of the following is an activity associated with the
leading function?
A) motivating subordinates
B) setting performance standards
C) training new employees
D) developing procedures Answer: A

12) Personnel activities associated with human resource management most likely include
all of the following EXCEPT .
A) orienting and training new employees

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B) appraising employee performance

C) building employee commitment
D) developing customer relationships Answer: D

13) Since human resources is important to all managers, which is NOT a personnel
mistake a manager wants to avoid making while managing?
A) waste time with useless interviews
B) hire the wrong person
C) have your people not doing their best
D) experience low turnover Answer: D

14) Approximately what percentage of people in the United States work for small firms? A)
10%
B) 25%
C) 50%
D) 80%
Answer: C

15) is the right to make decisions, to direct the work of others, and to give orders.
A) Leadership
B) Authority
C) Management
D) Responsibility Answer: B

16) Which of the following best defines line authority?

A) management over a small staff in a public firm
B) management with flexible decision-making powers
C) a manager's right to advise other managers or employees
D) a manager's right to issue orders to other managers or employees Answer: D

17) In most organizations, human resource managers are categorized as , who assist and
advise in areas like recruiting, hiring, and compensation.
A) staff managers; line managers
B) line managers; middle managers
C) line managers; staff managers
D) functional managers; staff managers Answer: A
18) Gerard is authorized to direct the work of subordinates and is responsible for accomplishing
the organization's tasks. Gerard is most likely a _ .
A) training specialist
B) staff manager
C) line manager

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D) recruiter Answer: C

19) Which of the following is NOT considered one of the line supervisor's responsibilities for
effective human resources management under the general headings outlined by a major company
discussed in the textbook?
A) protecting employees' health and physical condition
B) changing employees' attitudes regarding work
C) developing the abilities of each person
D) interpreting the company policies and procedures Answer: B

20) A line manager's human resource responsibilities most likely include all of the following
EXCEPT .
A) maintaining department morale
B) controlling labor costs
C) protecting employees' health
D) marketing new products and services Answer: D

21) Which of the following refers to the authority a manager has to advise other managers or
employees?
A) staff authority
B) line authority
C) functional authority
D) corporate authority Answer: C

22) Which of the following is most likely a line function of the human resource manager?
A) ensuring that line managers are implementing HR policies
B) advising top managers about how to implement EEO laws
C) representing the interests of employees to senior management
D) directing the activities of subordinates in the HR department Answer: D
23) One of the functions of a human resource manager includes directing the activities
of his or her subordinates in the HR department.
A) coordinative
B) corporate
C) staff
D) line Answer: D

24) Will works at a position in his organization where he maintain contacts within the local
community and travels to search for qualified job applicants. Will's position is best described as:
A) recruiter
B) manager
C) labor relations specialist

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D) job analyst Answer: A

25) functions involve assisting and advising line managers.

A) Staff
B) Advocacy
C) Line
D) Coordinative Answer: A
26) All of the following are major areas in which an HR manager assists and advises line
managers EXCEPT .
A) recruiting
B) hiring
C) strategic business planning
D) compensation Answer: C

27) Human resource managers generally exert within the human resources department
and outside the human resources department.
A) line authority; staff authority
B) staff authority; line authority
C) functional authority; line authority
D) staff authority; implied authority Answer: A
28) The HR staff member who has the job of advising management on all aspects of union-
management aspects is the .
A) recruiter
B) line manager
C) compensation manager
D) labor relations specialist Answer: D

29) All of the following are examples of human resource specialties EXCEPT .
A) job analyst
B) financial advisor
C) compensation manager
D) labor relations specialist Answer: B
30) Ralph works in the HR department and is in charge of developing the plans for how people
are paid and how the employee benefits program is run. Ralph is most likely holding the position
of:
A) training specialist
B) recruiter
C) compensation manager
D) job analyst Answer: C

31) Which of the following human resource management specialties calls for collecting data to

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write job descriptions?

A) job analyst
B) job training specialist
C) compensation manager
D) EEO coordinator Answer: A

32) Which of the following focuses on using centralized call centers and outside vendors as a
way to provide specialized support in day-to-day HR activities?
A) embedded HR units
B) corporate HR groups
C) HR centers of expertise
D) shared HR groups Answer: D

33) An HR generalist at Wilson Manufacturing has been assigned to the sales department to
provide HR management assistance as needed. Which of the following best describes the structure
of the HR services provided at Wilson Manufacturing?
A) shared HR teams
B) embedded HR teams
C) centers of expertise
D) corporate HR teams Answer: B
E)
34) Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice
president of human resources. Jackson Pharmaceuticals has a history of problems within its HR
department including difficulties recruiting and retaining qualified employees, EEO violations,
inadequate employee training programs, and confusion regarding health benefit enrollment and
coverage. With years of experience transforming HR departments in other firms, Whitman believes
she can correct the problems at Jackson Pharmaceuticals.

Which of the following best supports Whitman's idea to develop a shared services arrangement to
handle benefits administration?
A) An embedded HR unit would assist top management with big picture issues as well as
benefits administration.
B) Extensive training has been provided to line managers so that they fully understand the
different insurance options available to employees.
C) Outside vendors specializing in all aspects of benefits administration would provide
improved support to the firm's employees.
D) Lower insurance premiums would eliminate the need for outsourcing services and improve
employee health coverage.
Answer: C

35) Roberto Sanchez has recently been hired by Slate Pharmaceuticals as the senior vice

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president of human resources. Slate Pharmaceuticals has a history of a variety of significant

problems within its HR department such as EEO violations, inadequate employee training
programs, and employee confusion regarding health benefit enrollment and coverage. With 20 years
of experience transforming HR departments in other firms, Sanchez believes he can correct the
major problems at Slate Pharmaceuticals.

Which of the following best supports the argument that Sanchez should create embedded HR units
and assign relationship managers to each department within the company?
A) Employees frequently complain about the inconsistent assistance they receive from the HR
department due to its large size.
B) The global nature of the firm makes it difficult for the HR department to effectively
communicate corporate messages to employees scattered around the world.
C) Centralized call centers would enable the HR department to provide specialized support on
daily transactional activities.
D) Line managers want to implement additional screening and evaluations to improve the
quality of their subordinates.
Answer: A

36) Which of the following areas is NOT a major area where human resource managers assist
and advise line managers?
A) recruiting
B) hiring
C) compensation
D) performance management Answer: D

37) Which organization of the human resource function involves dedicated HR members that
assist top management in issues such as developing the personnel aspects of the company's long-
term strategic plan?
A) embedded HR teams
B) corporate HR teams
C) centers of expertise
D) shared services Answer: B

38) The vice president of marketing tells a marketing manager to prepare a presentation by the
end of the week. The vice president is most likely exercising which of the following?
A) staff authority
B) procedural authority
C) line authority
D) functional authority Answer: C
39) Which HR specialty involves preparing job descriptions?
A) compensation manager

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B) EEO coordinator
C) job analyst
D) recruiter Answer: C

40) Which of the following would most likely provide assistance to executives about long-term
strategic plans?
A) centers of expertise
B) embedded HR teams
C) corporate HR teams
D) professional employee organizations Answer: C
41) Between 2012 and 2022 what ethnic group is projected to decrease as a percentage of the
workforce?
A) black
B) Hispanic
C) Asian
D) white Answer: D

42) refers to the tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad.
A) Expansion
B) Globalization
C) Export growth
D) Diversification Answer: B
43) All of the following are the most common reasons that firms decide to globalize EXCEPT
.
A) lower costs
B) supervising quality control methods
C) make employees more productive
D) to do things better Answer: B

44) Which was NOT a change in the economic and political philosophies that drove the
globalization boom causing U.S. imports and exports to rise from $47 billion in 1960, to $562
billion in 1980, to about $5.1 trillion recently?
A) government dropped cross-border taxes or tariffs
B) economic free trades areas were formed
C) steps were taken to encourage free flow of trade among countries
D) instability in the world labor market Answer: D
45) Which of the following is NOT one of the five main types of digital technologies driving the
transfer of functionality from HR professionals to automation?
A) Email
B) Social media

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C) Mobile applications
D) Cloud computing Answer: A

46) What term refers to the knowledge, skills, and abilities of a firm's workers?
A) human resources
B) human capital
C) intangible assets
D) contingent personnel Answer: B
47) Which of the following describes one of the most significant demographic trends facing the
U.S. workforce?
A) increased number of aging workers
B) decreased number of contingent workers
C) increased number of blue-collar workers
D) decreased number of bilingual workers Answer: A

48) Over the next few years, employers may face a severe labor shortage because .
A) there are fewer people entering the workforce than there are retiring baby boomers
B) one-third of single mothers are not employed in the U.S. labor force
C) there are too many nontraditional workers holding multiple jobs
D) older employees are more family-centric than younger employees Answer: A

49) What is the term for workforces like those at the company Uber, where freelancers and
independent contractors work when they can, on what they want to work on, and when the company
needs them?
A) tele-commuters
B) human capital
C) job-analysts
D) on-demand workers Answer: D

50) Which of the following best describes a nontraditional worker?

A) workers near retirement age
B) ethnically diverse workers
C) workers with multiple jobs
D) service-based workers Answer: C
51) The recent trend where in some occupations (such as high-tech) unemployment rates are
low, while in others unemployment rates are still very high and recruiters in many companies can't
find candidates, while in others there's a wealth of candidates is called:
A) talent analytics
B) globalization
C) the unbalanced labor force
D) human capital Answer: C

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52) Approximately how many people now use information technology to work from remote
locations at least once per month?
A) 1 million
B) 5 million
C) 17 million
D) 50 million Answer: B
53) Which term refers to exporting jobs to lower-cost locations abroad?
A) freelancing
B) offshoring
C) rightsizing
D) warehousing Answer: B

54) Tools such as Twitter, Facebook, and LinkedIn that can be used to recruit new employees
are known as:
A) data analytics
B) social media
C) mobile applications
D) cloud computing Answer: B

55) involves using statistical techniques, algorithms, and problem-solving to identify

relationships among data for the purpose of solving particular problems.
A) Data analytics
B) Social media
C) Cloud computing
D) Gaming Answer: A
56) involves formulating and executing human resource policies and practices that
produce the employee competencies and behaviors the company needs to achieve its strategic aims.
A) Employee engagement
B) Data analytics
C) Strategic human resource management
D) Sustainability Answer: C
57) About what percentage of all job openings are now posted online? A) 15%
B) 35%
C) 50%
D) 70%
Answer: D

58) Which of the following is an aspect of "distributed" HR?

A) more centralized HRM decisions
B) HRM tasks redistributed to the company's employees and line managers

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C) more paperwork
D) HR professional embedded in all departments Answer: B

59) According to the textbook, approximately what percentage of job seekers used Glassdoor
during their job search to learn about a company they might apply for?
A) 11%
B) 32%
C) 48%
D) 70%
Answer: C
60) Strategic human resource management refers to .
A) formulating and executing human resource policies and practices that produce the employee
competencies and behaviors the company needs to achieve strategic aims
B) planning the balance of internal strengths and weaknesses with external opportunities and
threats to maintain competitive advantage
C) emphasizing the knowledge, education, training, skills, and expertise of a firm's workers
D) extending a firm's sales, ownership, and manufacturing to new markets Answer: A

61) refers to ensuring that the human resources management function is delivering its
services efficiently.
A) Strategic planning
B) Strategic human resource management
C) HR department lever
D) Human resource scorecard approach Answer: C
62) Evidence-based human resource management relies on all of the following types of
evidence EXCEPT .
A) scientific rigor
B) existing data
C) research studies
D) qualitative opinions Answer: D

63) Which term refers to the HR manager putting into place the policies and practices that
produce the employee competencies and skills the company needs to achieve its strategic goals?
A) HR department lever
B) strategic results lever
C) practices
D) employee cost lever Answer: B
64) refers to being psychologically involved in, connected to, and committed to getting
one's jobs done.
A) Ethics
B) Sustainability

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C) Human capital
D) Employee engagement Answer: D

65) Distributed HR is the idea that more and more human resource management tasks are now
being redistributed from a central HR department to the company's employees and line managers.

66) Strategic human resource management refers to performing basic day-to-day duties that
satisfy the needs and demands of both the employees and the employer.

67) According to research, less than one-third of all workers in the U.S. are mentally and
emotionally invested in their work.

68) The evidence used in evidence-based human resource management may come from actual
measurements, existing data, or critically evaluated research studies.
Chapter: 1

69) Which of the following refers to the standards someone uses to decide what his or her
conduct should be?
A) ethics
B) strategies
C) preferences
D) competencies Answer: A
70) Which organization provides professional certification for human resource managers?
A) Association of Certified HR Managers
B) Society for Human Resource Management
C) Academy of Human Resource Executives
D) Association of Business Administration Answer: B

71) Which of the following is NOT a HR certification?

A) HRCI's Professional in Human Resources (PHR)
B) HRCI's Senior Professional in Human Resources (SPHR)
C) SHRM Junior Professional
D) SHRM Certified Professional Answer: C

72) Which SHRM HR manager competency involves the ability to provide guidance to
organizational stakeholders?
A) consultation
B) ethical practice
C) business acumen
D) critical evaluation Answer: A

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73) Pablo has the ability to understand and apply information with which to contribute to his
organization's overall strategic plan. This is the SHRM HR competency of:
A) communication
B) critical evaluation
C) business acumen
D) leadership & navigation Answer: C
Chapter: 1

74) Which SHRM HR manager competency involves the ability to effectively exchange
information with stakeholders?
A) relationship management
B) communication
C) ethical practice
D) controlling Answer: B

75) The SHRM human resource manager competencies include ethical practice, business
acumen, and relationship management.

76) Human resource managers who complete HRCI professional certification exams can earn
PHR and SPHR, GPHR certificates.

Human Resource Management, 15e (Dessler)

Chapter 2 Human Resource Management Strategy and Analysis

1) defines the nature of the company's business in terms of how it will match its internal
strengths and weaknesses with its external opportunities and threats in order to maintain a
competitive position.
A) Financial auditing
B) Strategic planning
C) Employee benchmarking
D) Employee testing Answer: B

2) involves setting objectives, making forecasts, reviewing alternative courses of action,

evaluating options and implementing the plan.
A) The management planning process
B) Financial auditing
C) Employee testing
D) Employee benchmarking Answer: A

3) What is the first step in the basic planning process?

A) evaluating the possible alternatives

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B) implementing a course of action

C) setting an objective
D) comparing options Answer: C

4) Which of the following is NOT part of the basic managerial planning?

A) evaluation of best options
B) establishment of clear objectives
C) implementation of the plan
D) building corporate hierarchies Answer: D

5) Which term indicates the course of action for getting from where you are to where you want
to go?
A) goal
B) plan
C) proposition
D) assessment Answer: B

6) A course of action that a firm can pursue to achieve its strategic aims is known as a .
A) vision
B) goal
C) strategy
D) mission Answer: C

7) Strategic management is best defined as the process of identifying and executing the
organization's strategic plan by matching the company's capabilities with its .
A) environmental demands
B) competitive standards
C) natural resources
D) hierarchical skills Answer: A

8) All of the following are steps involved in the strategic management process EXCEPT
.
A) evaluating the firm's internal and external situation
B) asking, "Where are we now as a business?"
C) formulating a new business direction
D) offshoring low-skill jobs Answer: D

9) What is the first step in the strategic management process?

A) formulating a strategy
B) asking, "Where are we now as a business?"

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C) evaluating the strategic plan

D) implementing an environmental scan Answer: B
10) Which of the following is a simple guide used to compile relevant information about a
company's environment including economic, competitive, and political trends that may affect a
firm?
A) workforce requirement matrix
B) environmental scan worksheet
C) external resource system table
D) potential globalization network Answer: B

11) John wants to perform external and internal audits as part of the strategic management
process. What is a frequently used tool to organize relevant information on positive and negative
aspects of the company and environment?
A) BCG matrix
B) QSPM matrix
C) SWOT chart
D) EPS/EBIT table Answer: C
12) Which of the following provides a summary of a firm's intended direction and shows, in
broad terms, "what we want to become"?
A) mission statement
B) strategic plan
C) vision statement
D) marketing plan Answer: C

13) The sales director at WebMD is calculating annual sales revenue targets and the number of
new medical-related content providers that the firm needs to maintain a competitive advantage. In
which step of the strategic management process is the sales director involved?
A) evaluating the firm's internal and external strengths
B) defining the business and its mission
C) choosing specific strategies or courses of action
D) evaluating the strategic plan Answer: C
14) The of the California Energy Commission indicates that the organization assesses
and acts through public and private partnerships to improve energy systems that promote a strong
economy and a healthy environment.
A) mission statement
B) strategic plan
C) code of ethics
D) vision statement Answer: A

15) Goals are initiated by the bottom level of an organization according to the hierarchy of goals
approach to strategic planning.

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16) Steps in the basic management planning process include setting objectives, reviewing
alternative courses of action, and evaluating which options are best.
Chapter: 3

17) A mission statement is a general statement of a company's intended direction that evokes
emotional feelings in the organization's members.

18) Strategic management focuses more on translating a mission into goals than on the functions
of organizing, staffing, and controlling.
19) Why is strategic planning important to managers? Explain the importance of setting
hierarchical goals.
Answer: Strategic planning is important to managers because in well-run companies the goals from
the very top of the organization downward should form a more-or-less unbroken chain (or
"hierarchy") of goals. These goals, in turn, should be guiding what everyone does. Management
creates a hierarchy or chain of departmental goals, from the top down to the lowest-ranked
managers, and even employees. Then, if everyone does his or her job—if each salesperson sells his
or her quota, and the sales manager hires enough good salespeople, and the HR manager creates the
right incentive plan, and the purchasing head buys enough raw materials—the company and the
CEO should also accomplish the overall, company-wide strategic goals. You could therefore say
with great certainty that without a clear plan at the top, no one in the company would have the
foggiest notion of what to do. At best, you'd all be working at cross- purposes.
20) What is strategic management? List and explain each step in the strategic management
process.
Answer: Strategic management is the process of identifying and executing the organization's
mission, by matching the organization's capabilities with the demands of its environment. The steps
are as follows:
Step 1: Where are we now as a business?—Here the manager defines the company's current
business and mission. Specifically, what products do we sell, where do we sell them, and how do
our products or services differ from our competitors'?
Step 2: The second step is to ask, "Are we in the right business given our strengths and weaknesses
and the challenges that we face?" To answer this, managers "audit" or study both the firm's
environment and the firm's internal strengths and weaknesses. Prudent managers periodically assess
what's happening in their environments. You need to audit the firm's environment and strengths and
weaknesses. You can use the environmental scanning worksheet or the SWOT chart.
Step 3: Decide what our new business should be in terms of what we sell, where we will sell it, and
how our products or services differ from competitors' products and services. This step is where
vision statements and mission statements are developed.
Step 4: Translate the desired new direction into strategic goals. At Ford, for example, what exactly
did making "Quality Job One" mean for each department in terms of how they would boost quality?

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The answer was laid out in goals such as "no more than 1 initial defect per 10,000 cars."
Step 5: The manager chooses strategies—courses of action—that will enable the company to
achieve its strategic goals. For example, how should Ford pursue its goal of no more than 1 initial
defect per 10,000 cars? Perhaps open two new high-tech plants and put in place new, rigorous
employee selection, training, and performance-appraisal procedures.
Step 6: Strategy execution, which means translating the strategies created into action. This means
actually hiring (or firing) people, building (or closing) plants, and adding (or eliminating) products
and product lines.
Step 7: The manager evaluates the results of his or her planning and execution. Things don't always
turn out as planned. All managers should periodically assess the progress of strategic decisions.
21) Explain the difference between a firm's vision and its mission. How might these impact the
actions of an organization?
Chapter: 3

22) A company's strategy identifies the portfolio of businesses that comprise a firm and
the ways in which these businesses relate to each other.
A) functional
B) business unit
C) corporate-level
D) competitive Answer: C

23) A diversification corporate strategy implies that a firm will .

A) expand by adding new product lines
B) reduce the company's size to increase market share
C) save money by producing its own raw materials
D) increase profits by offering one popular product Answer: A
24) Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is
pursuing which of the following strategies?
A) consolidation
B) geographic expansion
C) diversification
D) horizontal integration Answer: C

25) When Apple opened its own Apple stores, this was an example of .
A) market penetration
B) concentration
C) vertical integration
D) consolidation Answer: C

26) Winchester Rugs operates a Web site called www.buyrugsdirect.com, so Winchester Rugs is
most likely using a strategy of .

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A) consolidation
B) geographic expansion
C) vertical integration
D) concentration Answer: C
27) Which of the following activities most likely indicates that a firm is implementing a vertical
integration strategy?
A) selling unprofitable divisions
B) producing raw materials
C) aggressively selling a new product
D) purchasing a competitor's firm Answer: B

28) The 2008 announcement by Starbucks that it would be closing approximately 600 of its
stores suggests the firm was using a strategy.
A) consolidation
B) diversification
C) geographic expansion
D) vertical integration Answer: A
29) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although
beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey
it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's
mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50
employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently
received multi-million dollar investments which will enable the business to expand its national
presence.

Which of the following, if true, would best support the argument that Sweet Leaf Tea should
implement a corporate-level strategy of concentration?
A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic
snack foods and organic coffee.
B) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic
beverages more frequently if the prices were lower.
C) Market data suggests that customers really only want the tea itself, not related products.
D) Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on
regional grocery-store chains rather than big box national retailers.
Answer: C
30) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although
beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey
it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's
mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50

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employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently
received multi-million dollar investments which will enable the business to expand its national
presence.

Which of the following, if true, would most likely undermine the argument that Sweet Leaf Tea
should implement a corporate-level strategy of vertical integration?
A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its
beverages.
B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor
of tea.
C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood
convenience stores.
D) Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so
that the company can keep prices low.
Answer: A
31) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although
beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey
it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's
mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50
employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently
received multi-million dollar investments which will enable the business to expand its national
presence.

Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a
competitive strategy of differentiation?
A) New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the
bottles.
B) Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite
the associated higher costs.
C) Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at
competitive prices.
D) Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers
of all ages.
Answer: B

32) A company's strategy identifies how to build and strengthen the business's long-
term competitive position in the marketplace.
A) functional
B) corporate-level
C) horizontal

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D) competitive Answer: D
33) Which of the following refers to any factors that allow a company to differentiate its product
or service from those of its competitors to increase market share?
A) functional strategy
B) competitive advantage
C) distinctive competency
D) related diversification Answer: B

34) A company's business-level strategy identifies the .

A) ways to strengthen a firm's long-term competitive position in the marketplace
B) tools for diversifying a business portfolio through the acquisition of MNEs
C) means to becoming a low-cost leader within a highly competitive industry
D) ways to carve out a market niche in order to compete for high-end customers Answer: A

35) Companies like Ferrari are known as _ because they carve out a market niche and
compete by providing a product that customers can attain in no other way.
A) cost leaders
B) focusers
C) visionaries
D) market leaders Answer: B
36) Which of the following strategies identifies the broad activities that each department will
pursue in order to help a business attain its competitive goals?
A) competitive
B) business-level
C) corporate-level
D) functional Answer: D

37) A firm's functional strategies identify the broad activities that each will do in order
to help the business accomplish its strategic goals.
A) supplier
B) department
C) executive
D) employee Answer: B

38) John wants his shoe store to adopt the strategy of having the lowest prices on shoes in town.
John is adopting which competitive strategy?
A) focusers
B) differentiation
C) cost leadership
D) providing input to top management about industry trends Answer: C
39) What is the primary reason that mergers and acquisitions fail?

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A) technology
B) financing
C) personnel
D) stock prices Answer: C

40) Critical human resource tasks during mergers and acquisitions include all the following
EXCEPT:
A) retaining key talent
B) merging the firms' cultures
C) choosing top management
D) enforcing current rules Answer: D
41) All of the following are services that human resource consulting companies provide during
mergers and acquisitions EXCEPT .
A) aligning compensation programs
B) overseeing database recovery systems
C) helping to determine which employee is best for which role in the new organization
D) identifying key talent and suitable retention strategies Answer: B

42) Lauren is identifying what each department in her company must do to help the business
accomplish its strategic goals. These are known as strategies.
A) competitive advantage
B) competitive
C) functional
D) vertical integration Answer: C

43) Consolidation keeps the company's strategy up to date by assessing progress toward
strategic goals and taking corrective action as needed.

44) McDonald's addressed its lagging profitability by first closing stores operating below its
guidelines. McDonald's used a consolidation strategy.
45) A business-level strategy is implemented by Pizza Hut, Domino's, Papa John's and Little
Caesar's in their competition with each other for pizza customers.

46) Identify the three levels of strategic planning and describe the function of each level. What
is the relationship between human resource strategy and a firm's strategic plans?
Answer: The three levels are corporate-level, business/competitive-level, and functional-level
strategies. Corporate-level strategy identifies the portfolio of businesses that comprise the company
and the ways in which these businesses relate to each other. The business-level strategy is the next
level. It identifies how to build and strengthen the business's long-term competitive position in the

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marketplace. The lowest level is the functional-level strategies. Functional strategies identify the
basic course of action that each department will pursue in order to help the business attain its
competitive goals. HR strategies are a type of functional strategy.

Every company needs its human resource management policies and activities to make sense in
terms of its broad strategic aims. Strategic human resource management means formulating and
executing human resource policies and practices that produce the employee competencies and
behaviors the company needs to achieve its strategic aims. The basic idea behind strategic human
resource management is simple: In formulating human resource management policies and activities,
the manager's aim must be to produce the employee skills and behaviors that the company needs to
achieve its strategic aims. Management formulates a strategic plan. That strategic plan implies
certain workforce requirements. Given these workforce requirements, human resource management
formulates HR strategies (policies and practices) to produce the desired workforce skills,
competencies, and behaviors. Finally, the human resource manager identifies the measures he or she
can use to gauge the extent to which its new policies and practices are actually producing the
required employee skills and behaviors.
47) In a brief essay, describe the three types of competitive strategies that firms use to achieve
competitive advantage. Support your answer with examples of organizations that currently use each
of the strategies.
Answer: The three forms of competitive strategies are cost leadership, differentiation, and focus.
Cost leadership means offering the lowest prices and/or emphasizing low costs and efficiency as a
source of competitive advantage. Walmart is an example of a company pursuing a cost leadership
strategy. Differentiation means emphasizing a source of difference between a company and its
competitors. The differential advantage becomes the source of competitive advantage. Target
follows a differentiation strategy by stressing the sale of more upscale brands than Walmart. A
focus strategy means that a company pursues a small niche in the market place. Ferrari follows this
strategy by offering a product that customers can get no other way.

48) is a strategic planning tool that shows how each department performance contributes
to achieve the company's overall strategic goal.
A) A strategic objective
B) Visionary strategy
C) Vertical strategy
D) A strategy map Answer: D
49) Formulating and executing human resource policies and practices that produce the employee
competencies and behaviors a company needs to achieve its strategic aims is known as
.
A) strategic human resource management
B) human resource performance systems
C) high-performance personnel management
D) personnel management by objectives Answer: A

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50) The primary purpose of strategic human resource management is to .

A) develop human resource policies that align with industry standards
B) integrate a company's strategic plan with its human resource strategies
C) create stringent appraisal systems that highlight employee weaknesses
D) use offshoring to reduce human resource costs and to initiate globalization Answer: B
51) In order to generate the desired workforce skill, competencies, and behaviors that a firm
needs to achieve its strategic goals, human resource management must first develop .
A) strategic plans
B) HR policies
C) employee skills
D) company norms Answer: A

52) John is a manager is looking at HR scorecard data through a , which presents the
manager with desktop graphs and charts, showing a computerized picture of how the company is
doing on all the metrics from the HR scorecard process.
A) digital dashboard
B) strategy map
C) HR audit
D) mission plan Answer: A
53) Which of the following is the final step in the strategic human resource management
process?
A) The manager asks, "What employee skills and behaviors will we need to achieve these plans
and goals?"
B) The manager formulates strategic plans and goals.
C) The manager asks, "Specifically what recruitment, selection, training, and other HR policies
and practices should we put in place so as to produce the required employee skills and behaviors?"
D) The manager asks, "How much profit can we make on this?" Answer: C
Chapter: 3

54) Human resource strategies are the used to support a firm's strategic goals.
A) visions and objectives
B) policies and practices
C) missions and goals
D) theories and tools Answer: B
55) The is a process for assigning financial and nonfinancial goals or metrics to the
human resource management-related strategy-map chain of activities required for achieving the
company's strategic aims.
A) HR scorecard
B) vision statement
C) digital dashboard

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D) benchmarking process Answer: A

56) Which of the following is a strategic planning tool that offers an overview of how each
department's performance contributes to achieving the company's overall strategic goals?
A) digital dashboard
B) HR scorecard
C) strategy map
D) HR audit Answer: C
57) Which of the following refers to a process for assigning financial and nonfinancial goals to
the HR management-related chain of activities required for achieving the company's strategic aims
and for monitoring results?
A) strategy map
B) HR scorecard
C) HR feedback scale
D) digital dashboard Answer: B

58) A presents a manager with desktop graphs and charts that illustrate where the
company stands on metrics from the HR scorecard process.
A) strategy map
B) business plan
C) scanning worksheet
D) digital dashboard Answer: D
59) The concise measurement system used by companies to show the quantitative standards the
firm uses to measure HR activities, employee behaviors resulting from the activities, and the
strategically relevant organizational outcomes of those employee behaviors is called a(n)
.
A) evaluation system
B) HR scorecard
C) appraisal system
D) evaluation benchmark Answer: B

60) Which of the following is used to manage employee performance and to align all employees
with the key objectives a firm needs to achieve its strategic goals?
A) functional planning system
B) HR scorecard
C) annual HR benchmarks
D) high-performance work system Answer: B

61) The specific human resource policies and practices used to support a firm's strategic goals
are known as human resource strategies.

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62) HR scorecards present managers with desktop graphs and charts of how a firm's HR
strategies compare to those of other firms in the same industry.

63) In a brief essay, explain how the strategy map, the HR scorecard, and the digital dashboard
are used in strategic human resource management.
Answer: Managers use the strategy map, the HR scorecard, and the digital dashboard to help them
translate the company's broad strategic goals into specific human resource management policies and
activities. The strategy map shows the "big picture" of how each department's performance
contributes to achieving the company's overall strategic goals. It helps the manager understand the
role his or her department plays in helping to execute the company's strategic plan. Many
employers quantify and computerize the map's activities, and the HR scorecard helps them to do so.
The HR scorecard is not a scorecard. It refers to a process for assigning financial and nonfinancial
goals or metrics to the human resource management–related chain of activities required for
achieving the company's strategic aims and for monitoring results. The saying "a picture is worth a
thousand words" explains the purpose of the digital dashboard. A digital dashboard presents the
manager with desktop graphs and charts, and so a computerized picture of where the company
stands on all those metrics from the HR scorecard process. A top manager's dashboard might
display on the PC screen real-time trends for strategy map activities, which gives the manager time
to take corrective action.
64) Which of the following terms refers to the quantitative measure of a human resource
management yardstick such as employee turnover or qualified applicants per position?
A) human resource audits
B) human resource metrics
C) management by objectives
D) human resource scorecards Answer: B

65) The use of human resource metrics is essential for .

A) management by objectives
B) emergent employee behaviors
C) corporate-level strategies
D) evidence-based management Answer: D
66) Which of the following terms refers to the process of comparing and analyzing the practices
of one firm with those of a high-performing company?
A) benchmarking
B) diversifying
C) strategizing
D) outsourcing Answer: A
Chapter: 3

67) Which of the following refers to an analysis by which an organization measures where it
currently stands and determines what it has to accomplish to improve its HR functions?

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A) HR methodology
B) HR benchmark
C) HR checklist
D) HR audit Answer: D
Chapter: 3

68) All of the following are commonly addressed in an HR audit EXCEPT .

A) exempt workers
B) job descriptions
C) accounting expenses
D) workers' compensation benefits Answer: C
69) Which term refers to software applications used to analyze and draw conclusions from HR
data?
A) data mines
B) talent analytics
C) HR scorecards
D) digital dashboards Answer: B

70) Executives at Hartford Clothing, a retail department store chain, want to find out what
products their customers buy, when they purchase products, and what days of the week are most
popular for shopping. Executives want to discover customer patterns and make predictions about
their customers' buying habits. What would be the most effective tool for Hartford?
A) data mining system
B) talent value model
C) financial audit
D) strategy map Answer: A
71) Which of the following questions would LEAST likely be answered by the use of workforce
analytics software?
A) Which departments need improvement?
B) What hiring policies are standard in the industry?
C) How many workers will the firm need in five years?
D) Why do employees choose to leave the organization? Answer: B

72) An HR manager conducting an HR audit on compensation would most likely search for
.
A) current job descriptions
B) workforce health and safety training
C) completed benefit enrollment forms
D) compliance with state and federal laws Answer: D
73) Like the scientific method, evidence-based HR management should have all of the
following characteristics EXCEPT .

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A) use of data
B) experimentation
C) subjectivity
D) prediction Answer: C

74) What tool might be best used to assess recruitment effectiveness?

A) computerized applicant tracking systems
B) benchmarking
C) data mines
D) strategy map Answer: A

75) Human resource metrics are used to assess a firm's HR performance and to compare one
firm's HR performance with that of another firm.
76) Human resource audits and benchmarking are two critical tools used by managers who
implement an evidence-based approach to human resource management.

77) A strategic audit would most likely NOT be used by an HR manager to assess a firm's
procedures and practices in regards to employee benefits.

78) HR audits typically review a firm's recruiting, testing, and training methods to ensure
compliance with government and organization regulations.
79) Although applicant tracking systems typically increase overall recruiting costs, the benefits
of hiring high-performing employees are worth the investment for most firms.

80) Benchmarking involves analyzing the demographic make-up of an organization over a

specific period to determine the overall diversity of the firm.

81) A construction firm that wants to compare its own HR-related metric results with those of
other construction firms can use a benchmarking service provided by SHRM.

82) Benchmarking indicates the extent to which a firm's HR practices are helping to accomplish
long-term strategic goals.
83) What are human resource metrics? Why are human resource metrics important in high-
performance work systems?
Chapter: 3

84) What are the HR uses of data analytics and big data?
Answer: Data analytics means using statistical and mathematical analysis and algorithms to find
relationships and make predictions. For example, when online bookstores use algorithms to predict
which books you're most likely to buy based on things like what books you've already bought and
similarities between you and other groups, they are using data analytics. Data mining is crucial for

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data analytics and is "the set of activities used to find new, hidden, or unexpected patterns in data."
Data mining sifts through huge amounts of employee data to identify correlations that employers
then use to improve their employee-selection and other practices.
Thanks to data mining, the manager can discover patterns that he or she can then use to make
predictions.
Big data is basically data analytics on steroids, using very large data sets. The basic idea (of
scientifically analyzing data to find relationships and make predictions) is the same. However, with
"big data" the volume, velocity, and variety of data that are analyzed are much greater. In terms of
volume, for example, Walmart now collects about 2.5 petabytes of data—2.5 million
gigabytes—every hour from its customer transactions. Similarly, in terms of velocity, all these data
are being created more or less instantaneously (as at Walmart); that means companies can use them
to more quickly to adapt in real time (for instance, to who's buying what products, and therefore
how to adjust online promotions). Finally, big data capitalizes on the huge variety of data now
available. For instance, data come not just from Walmart's transactions but from customers' mobile
phones, GPS, and social networks too.
85) Which of the following terms refers to a set of human resource management policies and
practices that promote organizational effectiveness?
A) management by objectives system
B) human resource metric
C) high-performance work system
D) strategic human resource map Answer: C

86) High-performance work organizations are most likely characterized by all of the following
EXCEPT .
A) using more selection tests
B) empowered front-line workers
C) extensive training
D) commitment to high production rates Answer: D
87) All of the following practices are most likely implemented by companies with high-
performance work systems EXCEPT .
A) hiring employees based on validated selection tests
B) providing pay increases based on service years
C) extensive training of the workforce
D) utilizing self-managing work teams Answer: B

88) Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses
validated selection tests when considering external hires. This most likely suggests the company is
developing a _.
A) high-performance work system
B) scorecard management system
C) benchmark and metric analysis

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D) management by objectives strategy Answer: A

89) MAX Computers manufactures affordable laptops, desktops, and tablets at its factory in
Arizona. MAX has experienced a moderate amount of financial success, but upper management
wants the firm to grow at a faster rate and become a bigger player in the highly competitive
computer market. The firm's greatest problems relate to its employees. Employee turnover is
high—most employees at MAX leave within two years or less of being hired. In addition, the rate
of productivity among employees is not as high as executives would like. The vice president of
human resources is considering moving MAX towards a high-performance work system.

Which of the following best supports the argument that MAX should move towards a high-
performance work system?
A) MAX competitors regularly use benchmarking to compare their employees to those in other
firms.
B) MAX customers purchase new computers every two years according to online customer
surveys.
C) Outsourcing clerical tasks would enable MAX to raise employee salaries and increase
productivity.
D) Using advanced recruitment and hiring practices will allow MAX to improve employee
productivity.
Answer: D
90) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona.
MAX has experienced a moderate amount of financial success, but upper management wants the
firm to grow at a faster rate and become a bigger player in the highly competitive computer market.
The firm's greatest problems relate to its employees. Employee turnover is high—most employees
at MAX leave within two years or less of being hired. In addition, the rate of productivity among
employees is not as high as executives would like. The vice president of human resources is
considering moving MAX towards a high-performance work system.

Which of the following questions is most relevant to MAX's decision to move toward a high-
performance work system?
A) How would the implementation of self-managing work teams affect employee morale and
work standards at MAX?
B) How will qualitative performance measures address the needs of MAX employees in
regards to the firm's benefits plan?
C) What roles should line managers, staff managers, and HR managers at MAX play in
performance appraisals?
D) What economic and demographic trends in the U.S. are related to the employee turnover
rate at MAX?
Answer: A

91) Which of the following is most likely a true statement about high-performance companies?

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A) Employees receive extensive training.

B) Employee turnover is extremely high.
C) Only executives are eligible for incentive pay.
D) The majority of jobs are filled externally. Answer: A
92) The primary purpose of implementing high-performance practices such as recruiting,
screening, and training is to .
A) foster a strong organizational culture
B) create management opportunities for new hires
C) develop a trained, flexible, and self-motivated workforce
D) utilize benchmarks to compare personnel skills within an industry Answer: C

93) Human resource practices, such as hiring based on selection tests, pay raises based on work
performance, and training provided to new and experienced employees, contribute to a company's
ability to achieve high-performance levels.
94) Companies with empowered, highly trained, flexible workforces have a competitive
advantage.

95) High-performance companies are less likely than low-performance companies to invest in
costly employee training programs.

96) A high-performance work system is a tool that quantifies the relationship between HR
activities, employee behaviors, and firm performance.
97) What is a high-performance work system? What role does strategic human resource
management play in high-performance work systems?
Answer: A high-performance work system is a set of human resource management policies and
practices that promote organizational effectiveness. A high-performance work system is what
managers now expect from the HR system. It means that the HR system is designed to maximize
the overall quality of human capital throughout the organization. Based on ongoing research, firms
that use HPWS practices perform at a significantly higher level than those that do not.
Strategic human resource management is significant to a high-performance work system. Strategic
human resource management refers to formulating and executing human resource policies and
practices that produce the employee competencies and behaviors the company needs to achieve its
strategic aims and to maximize its human resources. In formulating human resource management
policies and activities, the manager's aim must be to produce the employee skills and behaviors that
the company needs to achieve its strategic aims. For HPWSs, that most likely means implementing
policies and practices regarding selection tests, training, merit increases, and incentive pay.

98) What is an applicant tracking system? How can such systems improve a firm's talent
management efforts?
Answer: An applicant tracking system allows a firm to collect and assess recruitment metrics.

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Metrics might include, "quality of new hires" and on "which recruitment sources produce the most
new hires." Applicant tracking systems support the employer's talent management efforts in other
ways. For example, installing an Authoria ATS enabled the Thomson Reuters Company to identify
the sources, candidate traits, and best practices that work best in each geographic area where they
do business. This in turn enabled them to reduce recruiting costs, for instance, by shifting
recruitment dollars from less effective sources to ones that are more effective. Similarly, the ATS
can also help hire better employees, for instance, by helping the employer see which employee
competencies correlate with superior performance.
99) According to the text, approximately what percentage of the U.S. workforce feels engaged?
A) 5%
B) 30%
C) 50%
D) 75%
Answer: B

100) Which of the following is NOT one of the steps KIA UK used in their employee
engagement HR strategy?
A) set measurable objectives
B) focused on bonus-based compensation
C) held an extensive leadership development program
D) improved internal communications Answer: B

Chapter: 3
Human Resource Management, 15e (Dessler)
Chapter 3 Job Analysis and the Talent Management Process

1) Which term refers to the holistic, integrated and results and goal-oriented process of
planning, recruiting, selecting, developing, managing, and compensating employees?
A) job analysis
B) HR alignment
C) strategic planning
D) talent management

2) Connor, a manager at a boat manufacturing firm, takes a talent management

approach to his duties. Which of the following would Connor most likely do?
A) coordinate recruitment and compensation activities
B) use different competencies for recruitment and development
C) rely primarily on applicant testing results for hiring decisions
D) manage employees based on their experience with the organization Answer: A

3) Which of the following terms refers to the procedure used to determine the duties

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associated with job positions and the characteristics of the people to hire for those positions?
A) job description
B) job specification
C) job analysis
D) job context Answer: C
4) The information resulting from a job analysis is used for writing .
A) job descriptions
B) corporate objectives
C) personnel questionnaires
D) training requirements Answer: A

5) All of the following types of information will most likely be collected by a human resources
specialist through a job analysis EXCEPT .
A) work activities
B) human behaviors
C) performance standards
D) employee benefits options Answer: D
6) A manager uses the information in a job analysis for all of the following EXCEPT .
A) assessing training requirements
B) complying with FCC regulations
C) determining appropriate compensation
D) providing accurate performance appraisals Answer: B
7) Which of the following most likely depends on a job's required skills, education level,
safety hazards, and degree of responsibility?
A) employee compensation
B) organizational culture
C) annual training requirements
D) OSHA and EEO compliance Answer: A
8) In order for Hollis Construction to be in full compliance with the Americans with
Disabilities Act, the manager needs a for each position to validate all human resource
activities.
A) performance appraisal
B) compensation schedule
C) workflow system
D) job analysis Answer: D

9) Allison, a manager at a large clothing retail store, needs to determine essential duties
that have not been assigned to specific employees. Which of the following would most likely
provide Allison with this information?
A) work activities
B) job context

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C) job analysis
D) performance standards Answer: C

10) The lists a job's specific duties as well as the skills and training needed to
perform a particular job.
A) organization chart
B) job analysis
C) work aid
D) job description Answer: D

11) Jennifer, a manager at an engineering firm, has been assigned the task of conducting a
job analysis. What should be Jennifer's first step in the process?
A) deciding how the gathered information will be used
B) collecting data on job activities and working conditions
C) selecting representative job positions to assess
D) reviewing relevant background information Answer: A
12) Which of the following data collection techniques would be most useful when writing a job
description for a software engineer?
A) distributing position analysis questionnaires
B) interviewing employees
C) analyzing organization charts
D) developing a job process chart Answer: B

13) Which of the following is a written statement that describes the activities, responsibilities,
working conditions, and supervisory responsibilities of a job?
A) job specification
B) job analysis
C) job description
D) job context Answer: C

14) Which of the following refers to the human requirements needed for a job, such as
education, skills, and personality?
A) job specifications
B) job analysis
C) job placement
D) job descriptions Answer: A
15) All of the following requirements are typically addressed in job specifications EXCEPT
.
A) desired personality traits
B) required education levels
C) necessary experience

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D) working conditions Answer: D

16) Which of the following indicates the division of work within a firm and the lines of
authority and communication?
A) process chart
B) employee matrix
C) organization chart
D) corporate overview Answer: C
Chapter: 4

17) A(n) shows the flow of inputs to and outputs from a job being analyzed.
A) organization chart
B) process chart
C) job analysis
D) job description Answer: B
Chapter: 4
18) A workflow analyst would most likely focus on which of the following?
A) methods used by the firm to accomplish tasks
B) behaviors needed to complete specific work
C) a single, identifiable work process
D) a quantifiable worker skill Answer: C

19) Which of the following is an example of business process reengineering?

A) using computerized systems to combine separate tasks
B) creating a visual chart for work flow procedures
C) assigning additional activities to new employees
D) developing employee skills and behaviors Answer: A

20) During the job analysis process, it is important to before collecting data about
specific job duties and working conditions.
A) test job questionnaires on a small group of workers
B) confirm the job activity list with employees
C) select a sample of similar jobs to analyze
D) assemble the job specifications list Answer: C
21) The fourth step in conducting a job analysis most likely involves collecting data about all of
the following EXCEPT .
A) required employee abilities
B) typical working conditions
C) employee turnover rates
D) specific job activities Answer: C

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22) While performing the fifth step of a job analysis, it is essential to confirm the validity of
collected data with the .
A) EEOC representative
B) HR manager
C) legal department
D) worker Answer: D
23) During the job analysis process, the primary purpose of having workers review and modify
data collected about their current positions is to .
A) confirm that the information is correct and complete
B) provide a legal benchmark for employer lawsuits
C) encourage employees to seek additional job training
D) validate the job specification list provided by HR Answer: A

24) What is the final step in conducting a job analysis?

A) writing a job description and job specifications
B) validating all of the collected job data
C) collecting data on specific job activities
D) reviewing relevant background information Answer: A
Chapter: 4
25) Murray, Inc. emphasizes a desire for detail-oriented, motivated employees with strong social
skills as indicated in the firm's job .
A) specifications
B) analysis
C) reports
D) descriptions Answer: A

26) The primary drawback of performing a job analysis regards the .

A) unverifiable data a job analysis typically provides
B) certification required to conduct a job analysis
C) amount of time a job analysis takes to complete
D) redundant information gathered during a job analysis Answer: C
27) Job means assigning workers additional same-level activities.
A) enrichment
B) assignment
C) enlargement
D) rotation Answer: C

28) Which of the following terms refers to systematically moving workers from one job to
another?
A) job rotation
B) job enrichment

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C) job enlargement
D) job adjustment Answer: A
Chapter: 4

29) Which of the following terms refers to redesigning jobs in a way that increases the
opportunities for the worker to experience feelings of responsibility, achievement, growth, and
recognition?
A) job rotation
B) job enrichment
C) job reengineering
D) job enlargement Answer: B
30) Who argued that the best way to motivate workers is to build opportunities for challenge
and achievement into their jobs via job enrichment?
A) Adam Smith
B) Frederick Taylor
C) Frederick Herzberg
D) Abraham Maslow Answer: C

31) Jack is an employee at a Best Western Hotel. Some weeks he works with the catering group,
and other weeks he assists the reservations clerk or the parking attendant. This is an example of
.
A) job enlargement
B) job rotation
C) job enrichment
D) job specialization Answer: B
32) The rethinking and redesign of business processes to achieve dramatic improvements in
performance is called .
A) job redesign
B) reengineering
C) process engineering
D) job enlargement Answer: B

33) The information gathered during a job analysis is primarily used to ensure that firms are in
compliance with the EEO, OSHA, and all state governments.

34) Organization charts show the division of work throughout the organization, how a job
relates to others, and where a job fits in the organization.
35) A process chart provides relevant background information during the job analysis process
by indicating job titles and lines of communication.
Chapter: 4

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36) After identifying a business process to redesign, the next step in business process
reengineering is measuring the performance of the existing process.

37) If a manager wants to know "should a job even exist," a workflow analysis should be
performed.
38) Job enlargement refers to redesigning jobs in a way that increases responsibility and
achievement.

39) In reengineered business processes, workers tend to become collectively responsible for
overall results rather than individually responsible for just their own tasks.

40) How does job analysis support human resource management activities? Briefly describe one
of the methods commonly used for gathering job analysis data.
Answer: Job analysis provides information for recruitment and selection by laying out what the job
entails and what human characteristics are required to perform these activities. This information
helps management decide what sort of people to recruit and hire. Job analysis information is also
crucial for estimating the value of each job and its appropriate compensation. A performance
appraisal compares each employee's actual performance with his or her performance standards.
Managers use job analysis to determine the job's specific activities and performance standards.
Job analysis interviews are one of the most commonly used methods for gathering job analysis data.
They range from completely unstructured interviews to highly structured ones containing hundreds
of specific items to check off. Managers may conduct individual interviews with each employee,
group interviews with groups of employees who have the same job, and/or supervisor interviews
with one or more supervisors who know the job.
41) What are the steps involved in the job analysis process? Briefly discuss the methods
available for collecting job analysis information.
Answer: There are six steps in doing a job analysis. Step 1: Decide How You Will Use the
Information. Step 2: Review Relevant Background Information about the Job, Such as Organization
Charts and Process Charts. Step 3: Select Representative Positions.
Step 4: Actually Analyze the Job. Step 5: Verify the Job Analysis Information with the Worker
Performing the Job and with His or Her Immediate Supervisor. Step 6: Develop a Job Description
and Job Specification.

There are various ways (interviews or questionnaires, for instance) to collect information on a job's
duties, responsibilities, and activities. In practice, you could use any one of them, or combine
several. The basic rule is to use those that best fit your purpose. Thus, an interview might be best
for creating a list of job duties and job descriptions. The more quantitative position analysis
questionnaire may be best for quantifying each job's relative worth for pay purposes.
Interviews, questionnaires, observations, and diary/logs are the most popular methods for gathering
job analysis data. They all provide realistic information about what job incumbents actually do.

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42) What is the difference between job enlargement, job rotation, and job enrichment?
Answer: Job enlargement means assigning workers additional same-level activities. Thus, the
worker who previously only bolted the seat to the legs might attach the back as well. Job rotation
means systematically moving workers from one job to another. Psychologist Frederick Herzberg
argued that the best way to motivate workers is through job enrichment. Job enrichment means
redesigning jobs in a way that increases the opportunities for the worker to experience feelings of
responsibility, achievement, growth, and recognition. It does this by empowering the worker— for
instance, by giving the worker the skills and authority to inspect the work, instead of having
supervisors do that. Herzberg said empowered employees would do their jobs well because they
wanted to, and quality and productivity would rise.
43) Which of the following guidelines is most likely recommended to managers conducting a
job analysis?
A) Use one tool for gathering information to maintain the validity of the final results.
B) Rely on the human resource manager to complete questionnaires and verify data.
C) Conduct group interviews without supervisors present to ensure accuracy.
D) Ensure that the questions and the process are clarified to employees. Answer: D

44) Which method for collecting job analysis information is considered best for quantifying the
relative worth of a job for compensation purposes?
A) electronic log
B) worker diary
C) observation
D) position analysis questionnaire Answer: D
45) Jerome, a manager at an electronics company, needs to gather job analysis information from
a large number of employees who perform similar work. Which of the following would be most
appropriate for Jerome?
A) observing all employees
B) interviewing the HR manager
C) holding a group interview with a supervisor
D) conducting telephone surveys of all employees Answer: C

46) Which of the following is the primary disadvantage of using interviews to collect job
analysis data?
A) Interviews are a complicated method for collecting information.
B) Employees may exaggerate or minimize some information.
C) Interviews provide only general information about a worker's duties.
D) Interviews may require managers to reveal the job analysis function. Answer: B
Interviews are considered a simple method for collecting detailed job information especially
regarding uncommon but important employee activities.
47) Interviews for the purpose of collecting job analysis data will most likely address all of the

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following topics EXCEPT .

A) hazardous conditions
B) primary work duties
C) required education
D) personal hobbies Answer: D

48) Job analysts collecting information through observations and interviews benefit from the use
of a(n) to guide the process and ensure consistency.
A) structured list
B) electronic diary
C) job description
D) organization chart Answer: A
49) Which of the following is the primary disadvantage of using questionnaires to gather job
analysis information?
A) Questionnaires are the most expensive method of collecting data.
B) Supervisors are required to verify all collected questionnaire data.
C) Questionnaires are too open-ended for statistical information.
D) Developing and testing questionnaires is time-consuming. Answer: D

50) For which of the following jobs is direct observation NOT a recommended method for
collecting job analysis data?
A) assembly-line worker
B) accounting clerk
C) attorney
D) nurse Answer: C
51) One of the problems with direct observation is , which is when workers alter their
normal activities because they are being watched.
A) flexibility
B) falsification
C) reactivity
D) diversion Answer: C
Chapter: 4

52) A is the time it takes to complete a job.

A) work cycle
B) work week
C) shift
D) duty Answer: A
53) Which data collection method is most frequently used in conjunction with direct
observation?
A) interview

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B) questionnaire
C) electronic log
D) survey Answer: A

54) Which of the following requires workers to make daily listings of the activities in which
they engage as well as the amount of time each activity takes?
A) flowchart
B) agenda
C) outline
D) log Answer: D
55) Joaquin records every activity in which he participates at work along with the time it takes
him to complete each activity. Which of the following approaches to job analysis data collection is
most likely being used at Joaquin's workplace?
A) diaries
B) interviews
C) observations
D) questionnaires Answer: A

56) Pocket dictating machines and pagers have replaced traditional diary/log methods in many
firms. Which of the following problems have the modern methods most likely eliminated?
A) work time required to fill out forms and surveys
B) employee forgetfulness regarding daily activities
C) costs associated with copying and filing paperwork
D) employee frustration towards bureaucratic requirements Answer: B
57) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate
the personal service the store's employees provide. After a very profitable year, Purrfect Pets is
expanding by opening two more stores. Before hiring employees for the new stores, the manager is
considering the idea of conducting a job analysis for each position.

Which of the following, if true, would best support the argument that the manager should conduct
group interviews to gather job analysis information?
A) Purrfect Pets is an excellent place to work because of the positive work environment.
B) Most of the young employees of Purrfect Pets would feel awkward during a one-on-one
interview.
C) Employees at Purrfect Pets work well with their colleagues, and few staffing conflicts occur.
D) Numerous employees at Purrfect Pets perform similar tasks during the work day. Answer: D

58) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate
the personal service the store's employees provide. After a very profitable year, Purrfect Pets is
expanding by opening two more stores. Before hiring employees for the new stores, the manager is
considering the idea of conducting a job analysis for each position.

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Which of the following, if true, would best support the argument that the manager should use a
position analysis questionnaire to collect job analysis information?
A) Compliance with EEO laws requires businesses to compile quantitative data.
B) Management wants to develop a pay scale for all employees at Purrfect Pets.
C) Purrfect Pets managers are unfamiliar with the typical routines of most employees.
D) Managers believe that some Purrfect Pets employees are overlooking important daily tasks.
Answer: B
59) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate
the personal service the store's employees provide. After a very profitable year, Purrfect Pets is
expanding by opening two more stores. Before hiring employees for the new stores, the manager is
considering the idea of conducting a job analysis for each position.

Which of the following, if true, undermines the argument that the Purrfect Pets manager should
observe workers in order to gather job analysis information?
A) Purrfect Pets lacks the technology to perform quantitative job assessments.
B) Part-time and seasonal workers fill most of the positions at Purrfect Pets.
C) The tasks of most Purrfect Pets employees vary widely from day to day.
D) During the morning, business at Purrfect Pets typically slows down. Answer: C

60) What is the primary benefit of using a position analysis questionnaire to gather data for a job
analysis?
A) providing the opportunity for employees to vent job frustrations
B) sorting information for government statistics and records
C) classifying jobs for the purpose of assigning salaries
D) uncovering important yet infrequent job tasks Answer: C
61) A(n) is used to collect quantifiable data concerning the duties and responsibilities of
various jobs.
A) electronic diary/log
B) group interview
C) position analysis questionnaire
D) Internet-based survey Answer: C

62) Experts at the performed the earliest form of job analysis and published the
Dictionary of Occupational Titles.
A) EEOC
B) DOL
C) BLS
D) DHS Answer: B
63) What are the three main categories used in the Dictionary of Occupational Titles to rate,
classify, and compare different jobs?

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A) reasoning, language, mathematics

B) skills, communication, education
C) data, people, things
D) people, skills, reasoning Answer: C

64) The Department of Labor procedure uses a set of standard basic activities known as
to describe what a worker must do with respect to data, people, and things.
A) worker functions
B) employee duties
C) job procedures
D) job requirements Answer: A
65) What has been the most significant impact of modern technology on job analysis methods?
A) Extensive use of the Internet by HR managers enables more people to telecommute from
locations far from corporate headquarters.
B) Corporate use of the Internet and intranet has enabled HR managers to distribute and collect
job analysis surveys to employees in multiple geographic locations.
C) Worker functions have changed as a result of modern technology, so the DOL procedure for
data collection has been modified and categories have been altered.
D) The ability to falsify information on Internet surveys has led to an increase in interviews and
observations by HR managers to collect accurate job analysis information.
Answer: B

66) The most important consideration when developing an online job analysis is to .
A) make questions and the process as clear as possible
B) provide monetary rewards for timely completion
C) limit the number of questions to less than twenty
D) ask open-ended questions to ensure honest responses Answer: A

67) The immediate supervisor of a group of workers being interviewed for job analysis purposes
is not allowed to attend the session due to concerns about workers failing to provide honest
responses to questions.

68) Questionnaires developed for the purpose of job analysis are always structured in the form
of checklists so that the information can easily be entered into a database.

69) Observation as a job analysis data collection method is most appropriate for jobs that
involve physical activities.

70) Some employers collecting job analysis information provide employees with pocket
dictating machines and pagers to record activities at random times of the work day.
71) Quantitative approaches for collecting job analysis data are more appropriate than

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qualitative approaches when a manager seeks to compare jobs for pay purposes.

72) What time-saving options are available to a busy manager who needs to conduct a job
analysis and write job descriptions? Explain your answer in a brief essay.
Answer: Job analysis can be a time-consuming process. Managers can save time by holding group
interviews with groups of employees who have the same job. Managers use group interviews when
a large number of employees are performing similar or identical work, since this can be a quick and
inexpensive way to gather information. Busy managers often turn to the Internet for help writing
job descriptions because the process can save a great amount of time. Sites like O*NET and
www.jobdescription.com provide managers with important characteristics of various occupations,
as well as the experience, education, and knowledge needed to do each job well.

73) What are the advantages and disadvantages of using interviews to collect job analysis data?
Answer: Interviews are a relatively simple and quick way to collect data. Skilled interviewers can
gather information that might otherwise go undiscovered. Some activities might occur only
occasionally or be more informal in nature. Interviews can discover these types of activities. The
interview also offers an opportunity to explain the need for a job analysis. The biggest drawback is
the chance for information to be distorted either to outright falsification or honest
misunderstanding.
74) Most job descriptions contain sections that cover all of the following EXCEPT .
A) performance standards
B) working conditions
C) responsibilities
D) required overtime Answer: D
Chapter: 4

75) What type of information is contained in the job identification section of a job description?
A) job title
B) job summary
C) major functions or activities
D) standards of performance Answer: A

76) Which of the following is identified by the FLSA status section of a job description?
A) whether the employer is a non-profit organization
B) whether a job is exempt or nonexempt
C) whether the employer is a private or public firm
D) whether a job requires a college degree Answer: B
77) The classifies all workers into one of 23 major groups of jobs that are subdivided
into minor groups of jobs and detailed occupations.
A) Department of Labor Procedure
B) Position Analysis Questionnaire

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C) Standard Occupational Classification

D) Dictionary of Occupational Titles
Answer: C

78) According to the , an individual must have the requisite skills, educational
background, and experience to perform a job's essential functions.
A) DOL
B) ADA
C) FCC
D) SIC Answer: B
79) An employer is required to make a "reasonable accommodation" for a disabled individual in
which of the following situations?
A) if a disabled person has the necessary skills, education, and experience to perform the job
but is prevented by the job's current structure
B) when an employer fails to provide a job description for a position that a disabled person
would most likely be able to perform
C) if making changes would present the employer with an undue hardship
D) each time that a disabled individual applies for a position Answer: A
Chapter: 4

80) According to the ADA, job duties that employees must be able to perform, with or without
reasonable accommodation, are called .
A) job requirements
B) essential job functions
C) work activities
D) job specifications Answer: B
81) Which of the following Web sites was developed by the U.S. Department of Labor and
serves as a source for managers who need to write job descriptions?
A) bls.gov
B) opm.gov
C) usajobs.gov
D) onetcenter.org Answer: D

82) Janice, a department store manager, is in the process of writing job descriptions using
O*NET. Janice has already reviewed the company's business plan, so what should be her next step?
A) interview employees
B) compose a list of job duties
C) develop an organization chart
D) observe employees performing their duties Answer: C

83) The FLSA status section of a job description permits quick identification of a job as exempt

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or nonexempt from overtime and minimum wage provisions.

84) The Americans with Disabilities Act (ADA) requires that organizations have job
descriptions that list the essential functions of all jobs.

85) O*NET has become an increasingly popular Web tool for creating and distributing position
analysis questionnaires to employees who are located throughout the world.
Chapter: 4

86) How has modern technology, such as the Internet, changed job analysis methods? How has
the Internet improved the ability of managers to write job descriptions?
Answer: The human resource department can distribute standardized job analysis questionnaires to
geographically disbursed employees via their company intranets, with instructions to complete the
forms and return them by a particular date.

Many employers turn to the Internet for assistance with writing job descriptions. O*Net, the U.S.
Department of Labor's occupational information network, is an increasingly popular Web tool. It
allows users (not just managers, but workers and job seekers) to see the most important
characteristics of various occupations, as well as the experience, education, and knowledge required
to do each job well. Jobdescription.com is another popular site used for developing job descriptions.
87) How does the ADA affect hiring practices? How does an HR manager determine whether or
not a job description complies with the ADA?
Answer: Congress enacted the Americans with Disabilities Act (ADA) to reduce or eliminate
serious problems of discrimination against disabled individuals. Under the ADA, the individual
must have the requisite skills, educational background, and experience to perform the job's essential
functions. A job function is essential when it is the reason the position exists or when the function is
so specialized that the firm hired the person doing the job for his or her expertise or ability to
perform that particular function. If the disabled individual can't perform the job as currently
structured, the employer is required to make a "reasonable accommodation," unless doing so would
present an "undue hardship." The ADA does not require job descriptions, but it's probably advisable
to have them. Virtually all ADA legal actions will revolve around the question, "What are the
essential functions of the job?" Without a job description that lists such functions, it will be hard to
convince a court that the functions are essential to the job.

88) Which of the following is the primary source of information an employer uses to write a job
specification?
A) job summary
B) job description
C) performance standards
D) personnel replacement charts Answer: B
89) When a sales job is being filled by an untrained individual, the job specifications list will
most likely include as a way to predict which candidate will perform the job well.

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A) age and gender

B) past job performance
C) relevant certification
D) personality traits Answer: D

90) According to research, each of the following work behaviors is considered important in all
jobs EXCEPT .
A) attendance
B) experience
C) schedule flexibility
D) industriousness Answer: B
91) The statistical analysis method for developing job specifications is more defensible than the
judgmental approach because equal rights legislation forbids using traits that a firm cannot prove
distinguish between high and low job performers.

92) A conventional job description provides managers with a more comprehensive picture of
worker activities than a job requirement matrix, which fails to address how and why workers
perform specific job activities.
93) In a brief essay, compare and contrast job descriptions and job specifications.
Answer: The primary function of a job analysis is to develop job specifications and job
descriptions. A job description is a written statement of what the worker actually does, how he or
she does it, and what the job's working conditions are. You use this information to write a job
specification; this lists the knowledge, abilities, and skills required to perform the job satisfactorily.
There is no standard format for writing a job description. However, most descriptions contain
sections that cover:
1. Job identification
2. Job summary
3. Responsibilities and duties
4. Authority of incumbent
5. Standards of performance
6. Working conditions
7. Job specifications
The job specification takes the job description and answers the question, "What human traits and
experience are required to do this job effectively?" It shows what kind of person to recruit and for
what qualities you should test that person. The job specification may be a section of the job
description, or a separate document.
94) A human resource manager needs to develop job specifications for a new position at her
firm. She can either base the job specifications on statistical analysis or on common sense. Briefly
describe each method, and recommend which method the HR manager should use. Answer: Most
job specifications come from the educated guesses of people like supervisors and human resource
managers. The basic procedure here is to ask, "What does it take in terms of education, intelligence,

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training, and the like to do this job well?" There are several ways to get these "educated guesses."
You could simply review the job's duties and deduce from those what human traits and skills the job
requires. You can also choose them from the competencies listed in Web-based job descriptions. In
any case, use common sense when compiling your list. Don't ignore the behaviors that may apply to
almost any job but that might not normally surface through a job analysis. Industriousness is an
example. Who wants an employee who doesn't work hard?

The other option is to base job specifications on statistical analysis, which is more defensible but
also more difficult. The aim here is to determine statistically the relationship between (1) some
predictor (human trait, such as height, intelligence, or finger dexterity), and (2) some indicator or
criterion of job effectiveness, such as performance as rated by the supervisor. The procedure has
five steps: (1) analyze the job and decide how to measure job performance; (2) select personal traits
like finger dexterity that you believe should predict successful performance; (3) test candidates for
these traits; (4) measure these candidates' subsequent job performance; and (5) statistically analyze
the relationship between the human trait (finger dexterity) and job performance. Your objective is to
determine whether the former predicts the latter. This method is more defensible than the
judgmental approach because equal rights legislation forbids using traits that you can't prove
distinguish between high and low job performers.

95) Which of the following describes a job in terms of measurable and observable behaviors that
an employee must exhibit to do the job well?
A) competency-based job analysis
B) Department of Labor procedure
C) functional job analysis
D) high-performance work matrix Answer: A
96) Which of the following questions will most likely be addressed by a manager who is writing
a job description based on a competency-based job analysis?
A) What are the typical duties associated with this job?
B) What are the working conditions and safety issues related to this job?
C) What opportunities for advancement are available to an employee in this job?
D) What should the employee be able to do in order to competently perform this job? Answer:
D

97) Which of the following best supports the argument that jobs should be described in terms of
competencies rather than duties?
A) New employees in high-performance work systems receive extensive job skills training for
their specific positions.
B) Managers in global firms are empowered to implement job rotation, job enlargement, and
job enrichment in order to maximize productivity.
C) In high-performance work systems, employees serve as team members rotating among
various jobs.

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D) Globalization and telecommuting require workers to be able to self-manage and perform

duties without close supervision.
Answer: C
98) Many job analysts and employers assert that in today's work environment, job descriptions
based on lists of job-specific duties inhibit the worker flexibility that companies need.

99) Competency-based job analysis focuses on the knowledge, skills, and behavior of a worker
rather than the tasks associated with a particular job.

100) British Petroleum implemented a competency-based skills matrix for its employees. As a
result, employee training, appraisals, and rewards relate to the skills and competencies a worker
needs to accomplish the goals of the firm.

101) ABC Widgets, Inc. wants to develop a high-performance work system, so its HR department
should most likely develop traditional job descriptions rather than competency-based job
descriptions.
102) Writing a competencies-based job description typically involves compiling a list of job
duties.
Chapter: 4

103) What is a competency-based job analysis? Why should firms consider describing jobs in
terms of competencies instead of duties?
Answer: Job competencies are always observable and measurable behaviors. To determine what a
job's required competencies are, you should ask, "In order to perform this job competently, what
should the employee be able to do?" We can say that competency-based job analysis means
describing the job in terms of measurable, observable, behavioral competencies (knowledge, skills,
and/or behaviors) that an employee doing that job must exhibit to do the job well.

Competency-based job descriptions are beneficial to firms that are striving to be high- performance
work systems. Here the whole thrust is to encourage employees to work in a self- motivated way.
Employers do this by empowering employees, organizing the work around teams, encouraging team
members to rotate freely among jobs, and pushing more responsibility for things like day-to-day
supervision down to the workers.
Human Resource Management, 15e (Dessler)
Chapter 4 Personnel Planning and Recruiting

1) What is the first step in the recruitment and selection process?

A) performing initial screening interviews
B) building a pool of candidates
C) performing candidate background checks
D) deciding what positions to fill Answer: D

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2) Which of the following terms refers to the background investigations, tests, and physical
exams that firms use to identify viable candidates for a job?
A) selection tools
B) job analysis methods
C) personnel techniques
D) forecasting tools Answer: A
3) is the process of deciding what positions the firm will have to fill and how to fill
them.
A) Recruitment
B) Selection
C) Job analysis
D) Workforce planning Answer: D

4) Marcus, an HR manager for Samsung, must decide what positions the firm should fill in the
next six months, which means Marcus is currently working on .
A) screening job candidates
B) personnel planning
C) interviewing job candidates
D) writing job descriptions Answer: B
5) The process of deciding how to fill executive positions at a firm is known as .
A) internal recruiting
B) succession planning
C) long-term forecasting
D) advanced interviewing Answer: B

6) A firm's should guide employment planning and determine the types of skills and
competencies the firm needs.
A) job analysis
B) organization chart
C) marketing planning
D) strategic business planning Answer: D
7) Succession planning requires making forecasts of in three steps: __, develop inside
candidates, assess and choose those who will fill the key position.
A) identify key needs
B) job specifications
C) global trends
D) labor relations Answer: A

8) Which of the following terms refers to studying a firm's past employment needs over a
period of years to predict future needs?

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A) ratio analysis
B) trend analysis
C) graphical analysis
D) computer analysis Answer: B
9) A trend analysis is limited in its usefulness because it .
A) overlooks the passage of time in regards to staffing
B) addresses only the financial impact of employment changes
C) assumes constant increases in worker productivity
D) overlooks the potential for changes in skills needed Answer: D

10) Which of the following determines future staff needs by using ratios between a causal factor
and the number of employees required?
A) ratio analysis
B) forecasting ratio
C) personnel ratio
D) ratio matrix Answer: A
11) Newton Building Supplies hopes to generate an extra $4 million in sales next year. A
salesperson traditionally generates $800,000 in sales each year. Using ratio analysis, how many new
salespeople should Newton hire?
A) 2
B) 5
C) 10
D) 20 Answer: B

12) When using either a trend analysis or a ratio analysis, it is assumed that will remain
the same.
A) staffing levels
B) currency rates
C) productivity levels
D) recruitment plans Answer: C
13) A is a graphical method used to help identify how two variables are related.
A) trend analysis
B) ratio analysis
C) scatter plot
D) productivity chart Answer: C

14) Pablo wants to figure out likely future employment needs for Slate Industries by examining
past organizational employment needs of the company. This is an example of:
A) a qualification inventory
B) ratio analysis
C) succession planning

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D) trend analysis Answer: D

15) Which of the following contains data regarding employees' education, career development,
and special skills and is used by managers when selecting inside candidates for promotion?
A) computerized forecasting tools
B) qualifications inventories
C) trend records
D) scatter plots Answer: B
16) When managers need to determine which current employees are available for promotion or
transfer, they will most likely use .
A) scatter plots
B) skills inventories
C) estimated sales trends
D) personnel forecasts Answer: B

17) Which of the following refers to company records showing present performance and
promotability of inside candidates for a firm's top positions?
A) yield pyramids
B) trend analysis charts
C) succession planning tools
D) personnel replacement charts Answer: D
18) Qualifications inventories can be tracked and maintained by using all of the following
EXCEPT a .
A) ratio analysis matrix
B) personnel replacement chart
C) position replacement card
D) skills inventory software Answer: A

19) Workforce planning often involves paying continuous attention to workforce planning issues
which is called:
A) personnel replacement chart
B) predictive workforce monitoring
C) personnel replacement charts
D) yield pyramids Answer: B
20) What mathematical process do employers use to forecast availability of internal job
candidates that shows the probabilities that feeder positions in a chain will be filled?
A) trend analysis
B) access analysis
C) Markov analysis
D) workforce analysis Answer: C

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21) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel
chain. Barnum intends to open two new hotels within the next three years and will have many job
positions to fill. Historically, employee turnover is high at Barnum as employees remain with the
company for one or two years before quitting. Marie realizes that Barnum needs to make significant
changes in its personnel strategy in order to meet the company's goals for the future and improve
employee retention rates.

Which of the following, if true, best supports the argument that a scatter plot is the most appropriate
tool for Marie to use in estimating future personnel needs?
A) Productivity levels for Barnum employees typically vary from month to month.
B) The size of the two new Barnum hotels will be similar to the chain's other hotels.
C) Barnum requires HR to maintain qualifications inventories for all current employees.
D) Personnel replacement charts serve as useful tools when filling Barnum's managerial
positions.
Answer: B
22) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel
chain. Barnum intends to open two new hotels within the next three years and will have many job
positions to fill. Historically, employee turnover is high at Barnum as employees remain with the
company for one or two years before quitting. Marie realizes that Barnum needs to make significant
changes in its personnel strategy in order to meet the company's goals for the future and improve
employee retention rates.

Which of the following, if true, best supports the argument that Marie should implement a
computerized skills inventory database?
A) Barnum offers its employees the opportunities to participate in job rotation and job
expansion experiences.
B) Barnum's recruiting yield pyramid indicates that the firm should generate 1,000 leads in
order to fill 100 positions.
C) Barnum executives would like to transfer the firm's most qualified employees to the new
hotels to fill supervisory positions.
D) HR managers at Barnum frequently receive discrimination complaints that must be
investigated by the EEOC.
Answer: C
23) The ongoing process of systematically identifying, assessing, and developing organizational
leadership to enhance performance is known as .
A) employee mentoring
B) succession planning
C) work sampling
D) employee recruiting Answer: B

24) What is the first step in succession planning?

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A) creating an applicant pool

B) identifying and analyzing key position needs
C) selecting who will fill key positions
D) developing the strengths of current employees Answer: B
25) All of the following are methods used by firms to develop high-potential candidates for
future positions EXCEPT .
A) providing internal training
B) implementing job rotation
C) offering global assignments
D) developing skills inventories Answer: D

26) A Markov analysis is primarily used to .

A) predict the long-term employment needs in an industry
B) assess the productivity and tenure of a job applicant
C) forecast the availability of internal job candidates
D) analyze the effectiveness of recruitment sources Answer: C
27) Smith Industries is thinking of having another company take care of its benefits
management. This is called:
A) outsourcing
B) recruiting
C) telecommuting
D) screening Answer: A

28) Dixon Industries wants to engage in predictive workforce monitoring. As the HR manager at
Dixon, you should most likely .
A) continuously monitor workforce planning issues
B) primarily use recruiters for top executive jobs
C) frequently assess the online HR scorecard
D) regularly implement the Markov analysis Answer: A

29) Employment planning should be an integral part of a firm's strategic and HR planning
process.
30) Personnel planning requires an estimation of personnel needs, the supply of inside
candidates, and the likely supply of outside candidates.

31) When it refers to filling jobs like that of a maintenance clerk, personnel planning is called
succession planning.

32) The assumption shared by both trend analysis and ratio analysis is that productivity remains
about the same from year to year.

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33) A scatter plot is a graphical method used to help identify the relationship between two
variables.

34) In a brief essay, explain what workforce planning is and how it fits with the organization's
strategic planning.
Answer: Workforce (or employment or personnel) planning is the process of deciding what
positions the firm will have to fill, and how to fill them. It embraces all future positions, from
maintenance clerk to CEO. Employment planning should flow from the firm's strategic plans. Thus,
plans to enter new businesses or reduce costs all influence the types of positions you'll need to fill
or eliminate.
35) What tools are available for projecting personnel needs? Provide your answer in a brief
essay.
Answer: Trend tools used for projecting personnel needs include the trend analysis, the ratio
analysis, and scatter plot. Trend analysis means studying variations in your firm's employment
levels over the last few years. Trend analysis can provide an initial estimate of future staffing needs,
but employment levels rarely depend just on the passage of time. Other factors (like changes in
sales volume and productivity) also affect staffing needs. Another simple approach, ratio analysis,
means making forecasts based on the historical ratio between (1) some causal factor (like sales
volume) and (2) the number of employees required (such as number of salespeople). Also, a scatter
plot shows graphically how two variables—such as sales and your firm's staffing levels—are
related.

36) What methods are used by both small and large firms to forecast the supply of inside
candidates?
Answer: Department managers or owners of smaller firms often use manual devices to track
employee qualifications. Thus a qualification (or skill) inventory contains data on employees'
performance records, educational background, and promotability. Thus personnel inventory and
development records compile qualification information on each employee. Personnel replacement
charts are another option, particularly for the firm's top positions. They show the present
performance and promotability for each position's potential replacement. Larger firms obviously
can't track the qualifications of hundreds or thousands of employees manually. Larger employers
therefore computerize this information, using various packaged software systems.
Increasingly, they also link skills inventories with their other human resources systems. So, for
instance, an employee's skills inventory might automatically update each time he is trained or
appraised.
37) Bob needs to find and attract applicants to his company's open positions, which is known as
.
A) trend analysis
B) engagement
C) staffing
D) employee recruiting Answer: D

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38) Finding or attracting applicants for an employer's open positions is known as .

A) succession planning
B) employee recruiting
C) personnel planning
D) job posting Answer: B

39) Recruiting is necessary to .

A) determine whether to use inside or outside candidates
B) forecast the short-term supply of outside candidates
C) create positive word-of-mouth about a firm
D) develop an applicant pool Answer: D
Chapter: 5
40) A is used to calculate the number of applicants a firm must generate to hire the
required number of new employees.
A) trend analysis
B) ratio analysis
C) recruiting yield pyramid
D) scatter plot Answer: C

41) A recruiting yield pyramid is the historical arithmetic relationship between all of the
following EXCEPT .
A) internal and external candidates
B) offers made and offers accepted
C) recruitment leads and invitees
D) interviews and offers made Answer: A

42) According to U.S. court ruling, it is always illegal to recruit applicants with gender-specific
ads, but using word-of-mouth to spread information about job opportunities is legal in all situations.
43) The HR manager who recruits for a vacant job is typically the one who is responsible for
supervising the performance of that position.

44) Which of the following is the primary disadvantage of using internal sources of candidates
to fill vacant positions in a firm?
A) lack of knowledge regarding a candidate's strengths
B) potential to lose employees who aren't promoted
C) questionable commitment of candidates to the firm
D) significant training and orientation requirements Answer: B
45) All of the following are characteristics of a job posting EXCEPT .
A) listing the job's attributes

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B) providing the job's pay rate

C) publicizing the open job to employees
D) indicating the preferred number of applicants Answer: D

46) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel
chain. Barnum intends to open two new hotels within the next three years and will have many job
positions to fill. Historically, employee turnover is high at Barnum as employees remain with the
company for one or two years before quitting. Marie realizes that Barnum needs to make significant
changes in its personnel strategy in order to meet the company's goals for the future and improve
employee retention rates.

Which of the following, if true, most likely undermines Marie's decision to fill top positions with
inside candidates?
A) Barnum needs to head in a different direction with innovative ideas if it is to remain
competitive with other hotel chains.
B) Many current Barnum employees have indicated they are loyal to the firm by rejecting
offers to work at competing hotels.
C) Training new employees about the practices and procedures at Barnum is costly in regards
to both time and money.
D) The influence of local labor unions and EEO legislation is blamed for the high turnover rate
among Barnum employees.
Answer: A
47) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel
chain. Barnum intends to open two new hotels within the next three years and will have many job
positions to fill. Historically, employee turnover is high at Barnum as employees remain with the
company for one or two years before quitting. Marie realizes that Barnum needs to make significant
changes in its personnel strategy in order to meet the company's goals for the future and improve
employee retention rates.

All of the following questions are relevant to Marie's decision to fill top positions at the new hotels
with internal candidates EXCEPT:
A) What are the key managerial positions that are available at the new hotels?
B) What percentage of employers in the service industry use succession planning?
C) What skills, education, and training have been provided to potential candidates?
D) What is the designated procedure for assessing and selecting potential candidates? Answer:
B

48) Which of the following is NOT a tool used by firms to recruit outside candidates?
A) newspaper advertising
B) intranet job postings
C) employment agencies

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D) online job boards Answer: B

49) Publicizing an open job to current employees through a firm's intranet or bulletin board is
known as job posting.

50) Firms can reduce potential problems associated with rehiring former employees by crediting
them with the years of service they had accumulated before they left.

51) What are the pros and cons associated with using internal sources of job candidates? What
are the pros and cons of using Internet recruiting to locate external sources of job candidates?
Answer: Filling open positions with inside candidates has several advantages. First, there is really
no substitute for knowing a candidate's strengths and weaknesses, as you should after working with
them for some time. Current employees may also be more committed to the company. Morale may
rise if employees see promotions as rewards for loyalty and competency. And inside candidates
should require less orientation and (perhaps) training than outsiders. However, hiring from within
can also backfire. Employees who apply for jobs and don't get them may become discontented;
telling them why you rejected them and what remedial actions they might take is crucial. When all
managers come up through the ranks, they may have a tendency to maintain the status quo when a
new direction is required. Internet recruiting is a cost-effective way to publicize openings; it
generates more responses quicker and for a longer time at less cost than just about any other
method. Internet recruiting has two big potential problems— discrimination and overload. First,
fewer older people use the Internet, so online application gathering may inadvertently exclude
disproportionate numbers of older applicants (and certain minorities). Second, employers end up
deluged with resumes from job seekers.
52) What is the primary purpose of an applicant tracking system?
A) sorting resumes based on an applicant's years of work experience
B) generating advertisements for attracting and gathering applicants
C) assisting employers in attracting, screening, and managing applicants
D) assisting recruiters with locating internal applicants for key positions Answer: C

53) Which of the following factors plays the greatest role in determining the best medium for a
job advertisement?
A) skills needed for the job
B) job compensation and salary
C) time allowed to fill the position
D) graphics used in the advertisement Answer: A
54) When constructing a job advertisement, all of the following are aspects of the AIDA guide
EXCEPT .
A) attracting attention to the ad
B) implying long-term benefits
C) prompting applicant action
D) developing interest in the job Answer: B

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55) The run by the U.S. Department of Labor enables public employment agency
counselors to advise applicants about local and national job openings.
A) U.S. Career Center
B) National Job Bank
C) National Employment Agency
D) Equal Employment Opportunity Commission Answer: B
56) Counselors in state-run employment agencies conduct all of the following activities
EXCEPT .
A) reviewing employer job requirements
B) filing employer tax reports
C) visiting employer work sites
D) writing job descriptions Answer: B

57) Which of the following is typically responsible for paying the fees charged by a private
employment agency when an applicant is placed in a job?
A) employers
B) employees
C) state employment commissions
D) independent recruiters Answer: A
58) An employer will most likely use a private employment agency in order to .
A) receive assistance writing job ads
B) adhere to federal hiring practices
C) fill a specific job opening quickly
D) spend more time recruiting applicants Answer: C

59) Which of the following is the primary disadvantage for employers who use private
employment agencies to fill positions?
A) White-collar applicants are difficult to attract.
B) Applicant screening may not be thorough.
C) Applicant processing time is too lengthy.
D) Application procedures are complicated. Answer: B
60) Newton Manufacturing is using a private employment agency to recruit individuals for
management positions. As the HR manager at Newton, you need to ensure that applicants are
screened properly, so you should _ .
A) provide the agency with an accurate job description
B) post jobs on the firm's intranet and bulletin boards
C) develop applicant screening software for internal hires
D) send HR experts to monitor the agency's recruiting activities Answer: A

61) Kate works as a nurse on temporary assignment for hospitals throughout the region on an

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as- needed basis. Kate is most likely .

A) working as a contingent worker
B) participating in a job rotation
C) using job enlargement
D) benchmarking jobs Answer: A
62) Which of the following best explains why firms are using temporary workers more
frequently?
A) low cost when hired through agencies
B) workers' desires for flexible schedules
C) high cost of workers' compensation insurance
D) weak economic confidence among employers Answer: D

63) All of the following are common concerns that have been expressed to researchers by
temporary employees EXCEPT .
A) being in compliance with equal employment laws
B) feeling insecure about their employment situation
C) worrying about the lack of insurance benefits
D) being treated impersonally by employers Answer: A
64) Jessica Garza is a manager at a large retail store. Currently, Jessica has four temporary
workers under her supervision that a local staffing agency has provided. In which of the following
tasks related to the temporary workers should Jessica become directly involved?
A) negotiating the pay rate
B) setting the time-off policies
C) answering task-related questions
D) providing online training and development Answer: C

65) Which of the following terms refers to the use of nontraditional recruitment sources?
A) negligent hiring
B) personnel planning
C) human resource management
D) alternative staffing Answer: D
66) are special employment agencies retained by employers to seek out top management
talent for their clients.
A) State-run employment agencies
B) Private employment agencies
C) Temporary agencies
D) Executive recruiters Answer: D

67) Which of the following has improved the ability of executive recruiters to find potential
candidates?
A) mobility premiums

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B) Internet databases
C) corporate intranets
D) broad banding Answer: B
68) Which of the following is a service that provides short-term specialized recruiting to support
specific projects without the expense of retaining traditional search firms?
A) top-executive searches
B) contingent-based searches
C) on-demand recruiting services
D) just-in-time recruiting services Answer: C

69) What is the typical compensation structure for on-demand recruiting services?
A) hourly rate
B) commission
C) percentage fee
D) signing bonus Answer: A
70) Pamlico River Productions is seeking a top-level manager to oversee its finance division.
Qualified candidates can be difficult to find, so the business would most likely benefit from using
a(n) to recruit potential candidates.
A) executive recruiter
B) temporary agency
C) Internet-based job site
D) alternate staffing recruiter Answer: A

71) A small software firm is seeking several permanent employees with experience in the
semiconductor industry and advanced degrees in computer science. The firm is a small one and
cannot afford to pay a traditional recruiting firm a fee of 30% per each hire's salary. Instead, this
firm should consider using a(n) .
A) contingency-based recruiter
B) temporary staffing agency
C) outsourcing staffing service
D) on-demand recruiting service Answer: D
72) Approximately what percentage of new college graduates are hired to fill externally filled
jobs that require a college degree?
A) 7%
B) 83%
C) 16%
D) 38%
Answer: D

73) Which of the following is a primary goal of college recruiters?

A) building relationships with college career centers

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B) cutting future recruiting costs for the firm

C) developing a pool of temporary workers
D) attracting good candidates Answer: D

74) In regards to on-campus recruiting, which of the following is most likely to help sell the
employer to the interviewee?
A) recruiter's professional attire
B) sincerity of the recruiter
C) emphasis on the job location
D) well-written job descriptions Answer: B
75) Which of the following would be the best option for a business that needs to attract local
applicants for hourly jobs?
A) employee referral campaigns
B) on-demand recruiting services
C) college recruiting
D) walk-ins Answer: D

76) What is an advantage of using employee referral campaigns?

A) Local, hourly workers can be recruited quickly.
B) Applicants have received realistic job previews.
C) Rewards and incentives are eliminated.
D) Applicants have community ties. Answer: B

77) One type of workers is , who do all or most of their work remotely, often from home,
using information technology.
A) telecommuters
B) temps
C) walk-ins
D) recruiters Answer: A
78) Which Web site is increasingly serving as a recruitment source for passive job candidates?
A) Career Builder
B) You Tube
C) LinkedIn
D) Monster Answer: C

79) In most cases, job applicants view concise job advertisements as more attractive and
credible than lengthy ads with too many details about a job.

80) The U.S. Department of Labor maintains a nationwide computerized job bank called the
National Job Bank.

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81) Many firms use temporary hiring as a way to give prospective employees a trial run before
hiring them as full-time workers.
82) In most cases, it is more cost effective for firms to hire contingent workers through a temp
agency than to hire comparable permanent employees.

83) According to most employment laws, employees of temporary staffing firms that are
working in an employer's workplace are considered workers of both the temporary agency and the
employer.

84) An in-house temporary employee is a highly skilled worker, such as an engineer or software
designer, who is supplied for long-term projects under contract from an outside technical services
firm.
85) Offshoring means having outside vendors supply services that a firm's own employees
previously did in-house, while outsourcing means having overseas outside vendors provide services
once performed in-house.

86) Retained executive recruiters are paid whether or not they eventually fill the client's vacant
position.

87) The fees associated with both retained and contingent executive recruiters are increasing as
firms struggle to find qualified candidates.
88) In a brief essay, discuss how an HR manager should use the guide AIDA to write a help
wanted advertisement.
Answer: Experienced advertisers use the guide AIDA (attention, interest, desire, action) to
construct ads. An HR manager must attract attention to the ad with phrases and words that grab the
attention of readers. Next, a manager needs to develop interest in the job. You can create interest
with lines such as, "Are you looking to make an impact?" or use other aspects of the job, such as its
location. Create desire by spotlighting words such as travel or challenge. As an example, having a
graduate school nearby may appeal to engineers and professional people.
Finally, the ad should prompt action with a statement like "Call today." In general, more
information is better than less. Job applicants view ads with more specific job information as more
attractive and more credible.

89) Why do employers turn to private employment agencies for assistance in recruiting? Provide
at least four reasons for the use of such employment agencies.
Answer: There are many reasons for using a private employment agency. The firm does not have to
have internal human resource specialists for recruiting and screening. The firm may need the
position filled very quickly. There is a perceived need to recruit more minority and female
applicants. When the best candidates are employed elsewhere, it is more comfortable to have an

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agency approach the candidates. Use of an agency reduces recruiting time.

90) What policies and procedures are critical for companies that use temporary agencies for
contingent workers?
Answer: Companies should get a sample copy of the agency's invoice to ensure that the invoice fits
the company needs. Time sheets should be used because they provide a verification of hours
worked and an agreement to pay the agency's fees. The company should find out what policies
guide the hiring of an agency temp as a permanent employee. The company should also find out
how the agency recruits employees and what kind of benefits it pays. The company should specify
its dress code at each location to the agency. The company should insist on getting a document from
the agency stating that it is not discriminating when filling temp orders. Finally, make sure that the
agency has the proper information regarding what is required to adequately fill each job position.
91) What are the differences between the two types of executive recruiters? How do firms
benefit from using executive recruiters?
Answer: Executive recruiters may be contingent or retained. Retained recruiters are paid whether or
not the employer eventually hires the executive through the efforts of the search firm. These
recruiters tend to focus on executive positions paying $150,000 or more. Contingency- based
recruiters tend to handle junior to middle level management job searches in the $50,000-
$150,000 range. Recruiters bring a lot to the table. They have many contacts and are especially
adept at finding qualified employed candidates who aren't actively looking to change jobs. They can
keep your firm's name confidential until late into the search process. The recruiter can save top
management's time by finding and screening an applicant pool. The recruiter's fee might actually
turn out to be small when you compare it to the executive time saved.

92) Why is effective recruiting a challenge for many employers? What methods can employers
use to effectively recruit a more diverse workforce?
Answer: Effective recruiting is difficult for many employers because some recruiting methods are
superior to others, depending on the type of job for which you are recruiting. Second, the success
you have recruiting depends greatly on nonrecruitment issues and policies. For example, paying
10% more than most firms in your locale should, other things being equal, help you build a bigger
applicant pool faster. Third, employment law prescribes what you can and cannot do when
recruiting. For example, managers can't rely on word-of-mouth dissemination of information about
job opportunities when the workforce is substantially all white or all members of some other class,
such as Hispanic. In order for businesses to effectively recruit a more diverse workforce, they
should take the goal of recruiting more minorities seriously, and pursue that goal energetically. In
practice, this requires a three-part effort: Understand the recruitment barriers that prevent minorities
from applying, formulate the required recruitment plans for attracting and retaining minorities and
women, and institute the specific day-to-day programs into recruitment programs.
93) The fastest growing labor force segment in the United States over the next few years will be
those from years old.
A) 23-29

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B) 30-44
C) 45-64
D) 65+
Answer: C

94) Which of the following motivates most employees over 65 to work?

A) overtime payments
B) schedule flexibility
C) supportive work environments
D) additional sick days Answer: B

95) Smith Industries has set a goal of recruiting minority applicants. Which of the following
methods is LEAST likely to be successful for Smith Industries?
A) offering flexible work schedules
B) providing flexible benefits plans
C) utilizing executive recruiters
D) collaborating with professional organizations Answer: C
Chapter: 5
96) Older workers usually have higher absenteeism rates compared to younger workers due to
illness.

97) A question on an employment application form that requests the dates of attendance and
graduation from various schools may be illegal as it could reflect an applicant's age.

98) According to EEO law, it is legal to ask job applicants if they have ever received workers'
compensation.

99) To prevent the appearance of discriminatory hiring practices, firms are advised to avoid
asking job applicants on an application form whether they own or rent a house.
100) Video résumés eliminate the possibility of applicants claiming discrimination in a firm's
hiring practices.

101) Firms can predict job performance and employee tenure by analyzing job application
information, such as travel experience and education level.

102) When firms prove that they will use the information on job application forms as a predictor
of job performance, they are allowed under EEO laws to request information regarding an
applicant's age and marital status.
103) In a brief essay, discuss how EEO laws affect both recruiting and the information requested
on job application forms.
Answer: Firms that use the Internet for recruiting purposes must show that they are in compliance

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with EEO laws. Since fewer older people use the Internet, online application gathering may
inadvertently exclude disproportionate numbers of older applicants and certain minorities. To prove
they've complied with EEO laws, employers should keep track of each applicant's race, sex, and
ethnic group. The EEO says that, to be an "applicant," he or she must meet three conditions: he or
she must express interest in employment; the employer must have taken steps to fill a specific job;
and the individual must have followed the employer's standard application procedure. Firms must
adhere to EEO laws in regards to the information they request on job application forms. For
example, firms should remember that questions about an applicant's education should avoid asking
about the dates of attendance and graduation from various schools because the information may
reflect the applicant's age. The courts have usually held that employers violate Title VII by
disqualifying applicants from employment because of an arrest, so forms should not ask about an
applicant's arrest record. Some forms ask the applicant to list memberships in clubs, organizations,
or societies. Employers should include instructions not to include organizations that would reveal
race, religion, physical handicaps, marital status, or ancestry. It is usually illegal to require the
listing of an applicant's physical handicaps or past illnesses unless the application blank specifically
asks only for those that "may interfere with your job performance."

104) Which of the following is information that should NOT be requested on application forms?
A) experience
B) technical skills
C) marital status
D) training Answer: C
105) Which of the following is most likely a true statement about mandatory alternative dispute
resolution agreements?
A) Most federal courts have found the documents unenforceable.
B) Judicial appeals and reconsideration are available if legal errors occur.
C) Employees absorb most of the costs associated with the arbitration process.
D) Job applicants are typically more interested in firms that require arbitration. Answer: B
Human Resource Management, 15e (Dessler)
Chapter 5 Employee Testing and Selection (Chap 5 trong slide)

1) Which of the following terms refers to hiring workers who have criminal backgrounds
without proper safeguards?
A) employment malpractice
B) negligent hiring
C) improper hiring
D) invalid screening Answer: B

2) A reliable employment test will most likely yield .

A) consistent scores when a person takes two alternate forms of the test
B) improved scores when a person takes the same test more than once in a single day
C) high scores when a person takes two alternate forms of the test on different occasions

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D) similar scores when two different people are administered the test at different times Answer:
A
3) If a person scores a 70 on an intelligence test on one day and scores 110 when retested on
another day, you would most likely conclude that this test is .
A) valid
B) invalid
C) reliable
D) unreliable Answer: D

4) If a person scores a 78 on a test on one day and scores a 79 when retested on another day,
you would most likely conclude that this test is .
A) valid
B) invalid
C) reliable
D) unreliable Answer: C
5) Which of the following terms refers to the consistency of scores obtained by the same
person when retested with alternate forms of the same test?
A) equivalency
B) reliability
C) expectancy
D) validity Answer: B

6) Which of the following best describes how to use a test-retest (kiểm tra-kiểm tra lại)
reliability estimate to assess reliability?
A) administer a test with content based on what a person actually needs to know to effectively
perform the job in question
B) administer the same test to different people at two different points in time and compare their
test scores at time 2 with the scores at time 1
C) administer different tests to a group of people and compare the range of collected test scores
D) administer the same test to the same people at two different points in time and
compare their test scores at time 2 with their scores at time 1
Answer: D
7) Which of the following measures reliability by administering two different yet comparable
tests and then comparing the two test scores?
A) retest estimate
B) equivalent form estimate
C) internal comparison estimate
D) criterion validity measurement Answer: B

8) is used as an estimate of reliability and involves administering a test with x number

of items designed to assess a topic and then statistically analyzing the degree to which responses to

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the items vary together.

A) Retest estimate
B) Equivalent form estimate
C) Content validity estimate
D) Internal comparison estimate Answer: D
9) All of the following are used for estimating reliability of a test EXCEPT .
A) test-retest estimate
B) internal comparison estimate
C) equivalent form estimate
D) content validity measurement Answer: D

10) When repetitive questions appear on a questionnaire, which of the following is most likely
being measured?
A) test validity
B) retest estimate
C) internal consistency
D) criterion validity Answer: C

11) The unreliability of a test is best explained by all of the following EXCEPT .
A) poor sampling of question material
B) lack of equivalence between tests
C) inconsistent testing conditions
D) failure to predict job performance Answer: D
12) Which of the following terms refers to the accuracy with which a test fulfills the function for
which it was designed?
A) reliability
B) validity
C) expectancy
D) consistency Answer: B

13) Demonstrating the content validity of a test can be best accomplished by showing that
.
A) tasks performed on the test are general enough to apply to any type of job
B) higher test scores are statistically equivalent to proven, long-term job success
C) the test is representative of important aspects of performance on the job
D) scores on the test are both internally and externally reliable Answer: C

14) The first step in the test validation process is .

A) creating a test battery
B) administering tests
C) analyzing the job

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D) cross-validating Answer: C
15) Which of the following is a graph that shows the relationship between test scores and job
performance for a group of people?
A) performance standard
B) digital dashboard
C) competency model
D) expectancy chart Answer: D

16) What is the primary disadvantage of using concurrent validation?

A) Current employees may not be representative of new applicants.
B) New applicants are recent college graduates with limited experience.
C) Limited correlation exists between high test scores and job performance.
D) Test batteries have not been administered by professional industrial psychologists. Answer:
A
Chapter: 6
17) validation is considered the most dependable method of validating an employment
test.
A) Applicable
B) Predictive
C) Concurrent
D) Statistical Answer: B

18) The process of cross-validating a test involves all of the following EXCEPT .
A) using a new sample of employees
B) administering additional tests
C) evaluating the relationship between scores and performance
D) developing and analyzing a scatter plot of scores versus performance Answer: D
19) According to the American Psychological Association, all of the following are rights of test
takers EXCEPT the right to expect .
A) informed consent regarding the use of test results
B) scores to be interpreted by qualified individuals
C) tests to be the only selection tools for a job
D) fairness of the test for all who take it Answer: C

20) According to a survey, most employers who administer tests to applicants are measuring
.
A) job skills
B) psychological behaviors
C) interpersonal behaviors
D) ethical opinions Answer: A
21) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for

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customers. The company originated in Dallas and now boasts stores in 35 states. The business has
primarily expanded by selling franchises to qualified candidates. Golden Creamery executives
realize that the firm's success depends upon the success of each franchise. In the past, each
individual franchise owner determined the best method for screening applicants. However, as the
firm grows, Golden Creamery executives want to standardize the hiring process by requiring all
franchisees to use the same preemployment tests.

Which of the following best supports the argument that Golden Creamery should use a certified
psychologist to develop preemployment tests?
A) Golden Creamery needs to comply with all federal and state laws.
B) Golden Creamery competitors use psychologists for test development.
C) Golden Creamery strives to create a conscientious organizational culture.
D) Golden Creamery needs to ensure that tests are legally and ethically appropriate. Answer: D
22) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for
customers. The company originated in Dallas and now boasts stores in 35 states. The business has
primarily expanded by selling franchises to qualified candidates. Golden Creamery executives
realize that the firm's success depends upon the success of each franchise. In the past, each
individual franchise owner determined the best method for screening applicants. However, as the
firm grows, Golden Creamery executives want to standardize the hiring process by requiring all
franchisees to use the same preemployment tests.

Which of the following, if true, supports the argument that Golden Creamery should require
franchise owners to use the firm's preemployment tests?
A) Hourly employees at Golden Creamery stores typically remain with the company long
enough to be promoted to management positions.
B) Golden Creamery franchise owners pay an initial franchise fee and receive a percentage of
sales royalties in return.
C) Annual turnover rates for hourly employees of Golden Creamery stores are three times the
rate of comparable businesses.
D) Individuals interested in working at a Golden Creamery store can complete online
applications on the firm's Web site.
Answer: C

23) Tests administered for hiring purposes should be both valid and reasonable if used by a firm
that adheres to evidence-based human resources.

24) A reliable test is one that yields consistent scores when a person takes two alternate forms of
the test or when he or she takes the same test on two or more different occasions.

25) Equivalent form estimates compare test scores from the same test administered at two points

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in time to determine test equivalence.

26) Content validity is based on showing that the scores on the test are related to job
performance.

27) Test validity in employment testing is demonstrated through criterion validity and content
validity.

28) Organization-person fit is the primary concern of most employers during the selection
process.

29) There are five steps in the validation process beginning with analyzing the job and
concluding with administering the test.
30) A test battery is based on a combination of several tests that can then measure an array of
predictors.

31) Employers concerned about ethical and EEO violations may purchase employment tests that
have been validated.

32) To use predictive validation, one administers the test to applicants before they are hired. The
applicants are then hired using existing selection techniques but not the new tests in development.
Later, job performance measures are compared to the test scores under development.

33) The strong correlation between test results and job performance has led to numerous expert
recommendations that tests be used as the only selection tool in the hiring process.
34) Selection tests must be validated in the organization that uses them regardless of the validity
shown in other similar organizations.

35) Selection tests should be used as supplements to other tools like interviews and background
checks.

36) The American Psychological Association's standards for educational and psychological tests
are legally enforceable.

37) Criterion validity shows a relationship between how well a person performs on a selection
test and how well a person performs on the job.

38) According to the Uniform Guidelines, employers are required to prove the validity of
selection procedures for all assessments.

39) Why are tests and other screening tools an important aspect of employee selection? What
rights do test takers have during the testing process?

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Answer: Once you review your applicants' résumés, the next step is selecting the best candidates for
the job, which is where testing and other screening tools become important. Employers narrow the
applicant pool by using the screening tools such as tests, assessment centers, and background and
reference checks. Then the supervisor can interview likely candidates and decide who to hire.
Nothing you do at work is more important than hiring the right employees. It is important for three
main reasons: performance, costs, and legal obligations. Test takers have rights to privacy and
feedback under the American Psychological Association's (APA) standard for educational and
psychological tests; these guide psychologists but are not legally enforceable. Test takers have the
right to the confidentiality of test results, the right to informed consent regarding use of these
results, the right to expect that only people qualified to interpret the scores will have access to them,
or that sufficient information will accompany the scores to ensure their appropriate interpretation
and the right to expect the test is fair to all. For example, no one taking it should have prior access
to the questions or answers.
40) What is test validity? How are selection tests validated?
Answer: Test validity answers the question "Does this test measure what it's supposed to measure?"
Put another way, validity refers to the correctness of the inferences that we can make based on the
test. With employee selection tests, validity often refers to evidence that the test is job related—in
other words, that performance on the test is a valid predictor of job performance. Selection tests are
validated by a five step process: analyze the job, choose the tests, administer the test, relate test
scores to criteria, and revalidate the test.

41) What is the difference between criterion validity and content validity? Which one is more
difficult to demonstrate?
Answer: Criterion validity means demonstrating that those who do well on the test also do well on
the job and those that do poorly on the test do poorly on the job. Employers can demonstrate
content validity of a test by showing that the test constitutes a fair sample of the content of the job.
If the content on the test is representative of what the person needs to know for the job, then the test
is probably content valid. Demonstrating content validity sounds easier than it is in practice.
Demonstrating that (1) the tasks the person performs on the test are really a comprehensive and
random sample of the tasks performed on the job and (2) the conditions under which the person
takes the test resemble the work situation is not always easy. For many jobs, employers opt to
demonstrate other evidence of a test's validity—most often, criterion validity.
42) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for
customers. The company originated in Dallas and now boasts stores in 35 states. The business has
primarily expanded by selling franchises to qualified candidates. Golden Creamery executives
realize that the firm's success depends upon the success of each franchise. In the past, each
individual franchise owner determined the best method for screening applicants. However, as the
firm grows, Golden Creamery executives want to standardize the hiring process by requiring all
franchisees to use the same preemployment tests.

Which of the following questions is most relevant to Golden Creamery's decision to implement

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preemployment testing for all franchises?

A) Should Golden Creamery use internal or external sources for job candidates?
B) How will Golden Creamery ensure the confidentiality of an applicant's test results?
C) How does testing correlate with Golden Creamery's mission and vision statements?
D) What is the role of testing in Golden Creamery's strategic performance management
system? Answer: B
Determining whether to hire internally or externally is a recruiting issue rather than a testing
concern. Although a firm's mission and vision statements guide its general direction, such
statements are not directly relevant to testing.

43) tests include assessments of general reasoning ability and of specific mental abilities
like memory and inductive reasoning.
A) Motor ability
B) Personality
C) Achievement
D) Cognitive Answer: D
44) Grafton Industries administers selection tests to job candidates. The tests measure a range of
abilities including memory, vocabulary, verbal fluency, and numerical ability, so they are most
likely tests.
A) standardized
B) intelligence
C) achievement
D) personality Answer: B

45) All of the following are measured by aptitude tests EXCEPT .

A) deductive reasoning
B) numerical ability
C) temperament
D) memory Answer: C
46) As part of the selection process for a position at UPS, Jack has been asked to lift weights
and jump rope. Which of the following is most likely being measured by UPS?
A) interpersonal skills
B) cognitive skills
C) physical abilities
D) achievements Answer: C

47) Carl recently participated in a selection test for a position at Northern Aeronautics. The test
measured Carl's finger dexterity and reaction time, so it was most likely a(n) test.
A) motor ability
B) personality
C) cognitive

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D) interest Answer: A
48) All of the following are most likely assessed on personality tests EXCEPT .
A) extraversion
B) reasoning
C) sensitivity
D) emotional stability Answer: B

49) According to experts, most people are hired for their qualifications and fired because of
attitude, motivation, and .
A) physical limitations
B) lack of aptitude
C) temperament
D) psychological issues Answer: C
50) Make a Picture Story and the Forer Structured Sentence Completion Test are examples of
tests.
A) intelligence
B) apperception
C) self-reported
D) projective Answer: D
Chapter: 6

51) Which if the following is a projective personality test?

A) MMPI
B) California Psychological Inventory
C) Make a Picture Story
D) Myers Briggs Test Answer: C
Chapter: 6

52) The Big Five personality dimensions include all of the following EXCEPT .
A) neuroticism
B) optimism
C) extroversion
D) conscientiousness Answer: B
53) Which of the following personality dimensions represents a tendency to exhibit poor
emotional adjustment and experience negative effects such as anxiety, insecurity, and hostility?
A) neuroticism
B) extroversion
C) conscientiousness
D) openness to experience Answer: A
Chapter: 6

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54) represents a tendency to be sociable, assertive, and active.

A) Extroversion
B) Conscientiousness
C) Agreeableness
D) Openness to experience Answer: A
Chapter: 6

55) Mike Simmons recently applied for a position with Pfizer Pharmaceuticals. Which
personality trait most likely has the strongest correlation to Mike's success as a pharmaceutical sales
representative?
A) extroversion
B) agreeableness
C) conscientiousness
D) openness to experience Answer: A
56) Which personality characteristic refers to the disposition to be imaginative, nonconforming,
and unconventional?
A) extroversion
B) conscientiousness
C) neuroticism
D) openness to experience Answer: D

57) The tendency for one to be trusting, compliant, caring, and gentle is the personality
dimension known as .
A) extroversion
B) conscientiousness
C) agreeableness
D) openness to experience Answer: C
58) Which personality characteristic is comprised of both achievement and dependability?
A) neuroticism
B) extroversion
C) conscientiousness
D) agreeableness Answer: C

59) While some personality characteristics are associated with success in different types of jobs,
which personality trait is most frequently associated with job performance in all jobs?
A) openness to experience
B) conscientiousness
C) extroversion
D) agreeableness Answer: B
60) Red Robin Gourmet Burgers is a national restaurant chain with nearly 36,000 employees
that began as a small restaurant in Seattle. Over the years, Red Robin has attempted to develop a

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reputation as a fun, family restaurant that offers both excellent food and service. Red Robin's core
values—honor, integrity, having fun, and continually seeking knowledge—serve as the basis for all
of the firm's decisions and are even embroidered on the sleeves of every employee's uniform. As
Red Robin continues to expand, executives are considering adding tests to the screening process.

Which of the following, if true, would best support the argument that Red Robin should use
personality tests in the employee selection process?
A) Red Robin encourages employees to participate in the firm's environmental stewardship
program to show community support.
B) Red Robin seeks outgoing, motivated, and compassionate employees to enhance the
experience of its customers.
C) Red Robin offers monetary incentives to managers who meet quarterly sales targets and
exceed performance expectations.
D) Red Robin desires employees with extensive knowledge of the restaurant industry and at
least two years of experience serving customers.
Answer: B
61) Red Robin Gourmet Burgers is a national restaurant chain with nearly 36,000 employee that
began as a small restaurant in Seattle. Over the years, Red Robin has attempted to develop a
reputation as a fun, family restaurant that offers both excellent food and service. Red Robin's core
values—honor, integrity, having fun, and continually seeking knowledge—serve as the basis for all
of the firm's decisions and are even embroidered on the sleeves of every employee's uniform. As
Red Robin continues to expand, executives are considering adding tests to the screening process.

Which of the following, if true, would most likely undermine the argument that Red Robin should
use achievement tests in the employee selection process?
A) Red Robin receives so many applications that it only considers individuals with previous job
experience in the restaurant industry.
B) Red Robin provides a two-week training session to all new hires, which are frequently
college students with little experience in the restaurant industry.
C) Red Robin expects applicants for management positions to understand current EEO laws
and be aware of ADA requirements.
D) Red Robin requires applicants for cashier positions to take typing tests to assess their speed
at the cash register.
Answer: B

62) An interest inventory compares an applicant's current interests with the interests of
.
A) retired workers
B) other people in the same industry
C) other people in various occupations
D) managers and executives in the firm Answer: C

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63) Which of the following is used to measure job knowledge?

A) aptitude tests
B) interest inventories
C) achievement tests
D) projective tests Answer: C

64) Applicant tracking systems are mostly used by employers to .

A) develop work samples
B) develop specific job descriptions
C) verify a candidate's U.S. citizenship
D) screen and rank candidates based on skills Answer: D

65) Although inexpensive to develop, assessment centers are infrequently used by employers
because such tests have a weak correlation with future job performance.
66) Interest inventories are useful for career planning because they compare the interests of the
test taker to the interests of people in various occupations.

67) Applicant tracking systems compile resumes, track applicants during the hiring process, and
screen out applicants who do not meet minimum job requirements.

68) In a brief essay, discuss the use and effectiveness of cognitive tests versus work sampling
techniques for employee selection.
Answer: Cognitive tests are tests of general intellectual abilities. They measure not a single trait but
rather a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability.
Psychologists often call such tests aptitude tests, since they purport to measure aptitude for the job
in question. Consider the Test of Mechanical Comprehension which tests applicants' understanding
of basic mechanical principles. This may reflect a person's aptitude for jobs—like that of machinist
or engineer—that require mechanical comprehension. The work sampling technique tries to predict
job performance by requiring job candidates to perform one or more samples of the job's basic
tasks. Work sampling has several advantages. It measures actual job tasks, so it's harder to fake
answers. The work sample's content—the actual tasks the person must perform— is not as likely to
be unfair to minorities. Designed properly, work samples exhibit better validity than do other tests
designed to predict performance.
69) How would an employer benefit from using both personality tests and situational tests when
screening job applicants?
Answer: A person's cognitive and physical abilities alone seldom explain his or her job
performance. Other factors, like motivation and interpersonal skills, are very important, and these
can be discovered through personality tests. Employers use personality tests to measure and predict
intangibles of an applicant's personality, such as introversion, stability, and motivation.
Situational tests require examinees to respond to situations representative of the job. Work
sampling, video-based tests, and miniature job training are situational tests. Miniature job training

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and evaluation assumes that a person who demonstrates that he or she can learn and perform the
sample of tasks will be able to learn and perform the job itself. This approach tests applicants with
actual samples of the job, so it's inherently content relevant and valid.

70) Industrial psychologists often emphasize the "big five" personality dimensions in personnel
testing. List and explain the meaning of the big five dimensions. How do personality traits correlate
with job performance?
Answer: The "big five" personality dimensions are neuroticism, extroversion, agreeableness,
conscientiousness, and openness to experience. Neuroticism refers to a tendency to exhibit poor
emotional adjustment and experience negative effects like anxiety and insecurity. Extroversion
represents a tendency to be sociable, assertive, and active. Openness to experience is the disposition
to be imaginative, nonconforming, unconventional, and autonomous. Agreeableness is the tendency
to be trusting, compliant, caring, and gentle. Conscientiousness is comprised of two related facets
including achievement and dependability.

Chapter: 6
71) What is a management assessment center? What are some of the most common tasks
conducted in management assessment centers?
Answer: A management assessment center is a 2-3 day simulation in which 10-12 candidates
perform realistic management tasks under the observation of experts who appraise each candidate's
leadership potential. Typical simulated exercises include 1) the in basket, 2) leaderless group
discussion, 3) management games, 4) individual presentations, 5) objective tests, and 6) the
interview. These centers can be used for promotion and development purposes as well as for
selection.

72) What are three arguments against the use of personality tests as predictors of job
performance?
Answer: First, projective tests are hard to interpret. An expert must analyze the test taker's
interpretations and infer from them his or her personality. The test's usefulness then assumes there's
a measurable relationship between a personality trait (like introversion) and success on the job.
Second, personality tests can trigger legal challenges. For example, one court held that the MMPI is
a medical test (because it can screen out applicants with psychological impairments), and so might
violate the ADA. Third, some experts dispute that self-report personality tests predict performance
at all. Fourth, people can and will fake responses to personality tests. So personality tests can be
useful tools but there can be significant concerns about use.

73) With the work sampling technique, applicants are .

A) asked to submit examples of projects they have completed for other employers
B) tested on their ability to perform several tasks crucial to performing the job of interest
C) tested on their ability to perform a range of tasks related to several positions in a firm
D) given video-based situational interviews to assess their critical thinking skills Answer: B

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74) Which of the following is the primary advantage of the work sampling technique?
A) Applicants find it difficult to fake answers.
B) Employers learn about an applicant's personality.
C) Applicants can evaluate their own performance.
D) Fine motor skills can be accurately assessed over time. Answer: A

75) A(n) is a multi-day simulation in which candidates perform realistic tasks in

hypothetical situations and are scored on their performance.
A) work sampling event
B) situational judgment test
C) management assessment center
D) applicant personality test Answer: C

76) Typical simulated exercises used in management assessment centers include all of the
following EXCEPT .
A) the in-basket
B) leaderless group discussions
C) motor skills assessments
D) management games Answer: C
77) Which of the following is the primary advantage of using management assessment centers
in the selection process?
A) Development costs are very low.
B) Minimal time is required for test administration.
C) Industrial psychologists are involved in the testing process.
D) Experts observe and appraise each candidate's leadership potential. Answer: D

78) Work sampling, miniature job training, and video-based tests are examples of .
A) intelligence tests
B) personality tests
C) situational tests
D) interests inventories Answer: C
79) Which of the following terms refers to training candidates to perform several of the job's
tasks and then assessing the candidates' performance prior to hire?
A) achievement testing
B) work sampling technique
C) management assessment center
D) miniature job training Answer: D

80) Carter Vacuums needs to hire 20 new employees to fill positions at its manufacturing
facility. The HR department wants to minimize the costs related to screening applicants but also
wants the assessment method to be highly valid to the specific jobs. Which of the following would

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be the best choice for Carter Vacuums?

A) structured interviews
B) cognitive ability tests
C) assessment centers
D) work samples Answer: B
81) Blue Bay Hotels is in the process of modifying the assessment methods the company uses to
hire new employees. In the past, the hotel chain has been accused by minority organizations of
violating EEO laws in its hiring practices. Which of the following applicant assessment methods
would most likely have the LEAST adverse impact on minorities?
A) aptitude tests
B) cognitive ability tests
C) work sampling technique
D) job knowledge tests Answer: C

82) Tina is applying for a job as an assembly worker at Honda. As part of the selection
procedure, Tina received classroom instruction and was asked to practice assembling windshield
wipers onto cars. Tina most likely participated in .
A) miniature job training and evaluation
B) situational judgment tests
C) assessment centers
D) management games Answer: A
83) As the HR manager at Johnson Manufacturing, Derek is responsible for deciding which
selection tools are most appropriate. When deciding on a specific selection tool, Derek should most
likely consider all of the following factors EXCEPT the tool's .
A) return on investment
B) adverse impact
C) persistence
D) usability Answer: C

84) Most small businesses find it cost-effective to conduct validity studies of the selection tools
they use.

85) Employers most likely conduct background investigations and reference checks to verify a
candidate's .
A) age
B) marital status
C) military service
D) disability history Answer: C
86) According to surveys of HR managers, which of the following is most frequently verified
during an employment background investigation?
A) age

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B) references
C) credit ratings
D) driving records Answer: B

87) Which of the following is the primary reason that firms conduct background investigations
of job applicants?
A) adhere to legal hiring practices
B) limit the number of applicants
C) uncover false information
D) report criminals to police Answer: C
88) Elliot, a manager at Harwood Publishing, gave a bad reference to a former employee. Elliot
could most likely be accused of if the information is both false and harmful.
A) discrimination
B) adverse impact
C) arbitration
D) defamation Answer: D

89) Which of the following methods for gathering background information about a job applicant
is NOT recommended because of potential legal violations?
A) searching social networking sites for posted information about the applicant
B) using a database to access information about the applicant's credit history
C) locating references other than the ones provided by the applicant
D) using a search engine to find information about the applicant Answer: A
90) According to state and federal laws, which of the following actions is NOT required of
employers who check background information on applicants?
A) disclosing to the applicant that a credit report will be requested
B) certifying to the reporting agency of the employer's legal compliance
C) providing copies of reports to the applicant if adverse action is considered
D) providing a detailed rationale explaining the reason for any adverse action Answer: D

91) In which of the following situations is it NOT legal to require an applicant to take a
polygraph test as part of the selection process?
A) electrical engineer at the Department of Energy
B) pharmacist's assistant at Walgreen's
C) security guard at Wells Fargo Bank
D) cashier at J.C. Penney's Answer: D
92) What type of screening device is designed to measure attitudes regarding tolerance of others
who steal and other forms of counter productivity?
A) honesty tests
B) interest inventories
C) personality tests

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D) graphology Answer: A

93) For an employer to administer a polygraph exam during an ongoing investigation of theft,
an employer must do all of the following EXCEPT .
A) prove that the accused had access to the property
B) document a reasonable suspicion prior to requesting a polygraph
C) explain the details of the investigation and the questions to be asked during the polygraph
D) subject all employees with access to the property in question to the same polygraph
examination as the accused employee
Answer: D
94) Graphology, a tool for assessing basic personality traits, is also called _ .
A) numerology
B) reasoning analysis
C) handwriting analysis
D) polygraph output assessment Answer: C

95) What type of screening is used to reduce absenteeism and establish a baseline for future
insurance claims?
A) physical exams
B) personality tests
C) substance abuse screening
D) fine motor skills assessments Answer: A

96) Which of the following is most likely true regarding substance abuse screening?
A) According to federal law, all employers must test all employees for illegal drugs.
B) Some urine sample tests cannot distinguish between legal and illegal substances.
C) Most employers test potential applicants during the recruitment process.
D) Most urine sample tests measure the degree of impairment. Answer: B
97) E-Verify is primarily used by employers to _ .
A) review an applicant's employment records
B) file an applicant's income tax information
C) determine if an applicant is eligible to work in the U.S.
D) report an applicant's work status to the U.S. government Answer: C

98) According to experts known as human lie detectors, which of the following characteristics
most likely indicates that a job candidate is being deceptive?
A) uncrossed legs
B) irregular breathing
C) unchanging pupils
D) slow verbal responses Answer: B

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99) Managers cannot be sued for defamation when giving bad references because only
employers are held responsible by state and federal courts.
100) Most employers report preferring written references to telephone references because written
letters provide more candid information about job candidates.

101) The Privacy Act is the main directive at the federal level that governs how employers
acquire and use applicants' and employees' background information.

102) How can employers protect themselves against negligent hiring?

Answer: Negligent hiring means hiring employees with criminal records or other problems who
then use access to customers' homes (or similar opportunities) to commit crimes. Avoiding
negligent hiring claims requires good screening. This means taking "reasonable" action to
investigate the candidate's background. Specifically, ". . . make a systematic effort to gain relevant
information about the applicant, verify documentation, follow up on missing records or gaps in
employment, and keep a detailed log of all attempts to obtain information, including the names and
dates for phone calls or other requests." Background investigations and reference checks can be
major ways of avoiding negligent hiring. Honesty testing and drug testing can be others.

103) Various federal and state laws govern how employers acquire and use applicants' and
employees' background information. What four steps are necessary in order for an employer to be
in compliance with these laws?
Answer: The four steps are 1) disclosure and authorization; 2) certification; 3) provision of report
copies; and 4) notice after adverse action. In the first step, employers must disclose to the applicant
or employee that a report will be requested and that copies may be provided to the
employee/applicant, and the employer must obtain the employee/applicant's written authorization.
In the second step, the employer must certify to the reporting agency that the employer will comply
with the federal and state legal requirements. In the third step, the employer must provide copies of
the report to the applicant/employee if adverse action such as withdrawing an offer or dismissing
the employee is contemplated. After the employer provides the employee or applicant with copies
of the consumer and investigative reports and a "reasonable period" has elapsed, the employer may
take adverse action. If so, the employee or applicant must receive an adverse action notice.
Human Resource Management, 15e (Dessler) Chapter 7 Interviewing Candidates

1) Which of the following is the most commonly used selection tool?

A) telephone reference
B) reference letter
C) interview
D) personality test Answer: C

2) Which of the following refers to a procedure designed to predict future job performance
based on an applicant's oral responses to oral inquiries?

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A) work sample simulation

B) selection interview
C) reference check
D) arbitration Answer: B

3) When an interview is used to predict future job performance on the basis of an applicant's
oral responses to oral inquiries, it is called a interview.
A) screening
B) selection
C) benchmark
D) background Answer: B
4) According to the text, selection interviews are classified by all of the following factors
EXCEPT .
A) administration
B) structure
C) content
D) length Answer: D

5) What is the type of interview which lists the questions ahead of time?
A) structured interview
B) unstructured interview
C) situational interview
D) behavioral interview Answer: A

6) Which of the following is another term for an unstructured interview?

A) directive
B) nondirective
C) unformatted
D) administrative Answer: B
7) Which of the following is an advantage of using a nondirective format when interviewing
job candidates?
A) allows candidates to ask questions
B) uses a manager's time more effectively
C) pursues points of interest as they develop
D) scores and compares candidates with consistency Answer: C

8) Which of the following is the primary disadvantage of using structured interviews during
the employee selection process?
A) higher potential for bias
B) limited validity and reliability
C) inconsistency across candidates

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D) reduced opportunities for asking follow-up questions Answer: D

9) How do situational interviews differ from behavioral interviews?
A) Situational interviews are based on an applicant's responses to actual past situations.
B) Situational interviews are based on how an applicant might behave in a hypothetical
situation.
C) Situational interviews ask applicants job-related questions to assess their knowledge and
skills.
D) Behavioral interviews ask applicants to describe their emotions in different hypothetical
situations.
Answer: B

10) Which of the following statements is representative of what might be asked in a behavioral
interview?
A) "Consider a time when you were faced with an angry client. What did you do to turn the
situation around?"
B) "We are concerned with employee pilferage. As a manager here, how would you go about
discouraging this behavior?"
C) "Employees in this division are frequently under a great deal of pressure. How do you think
you would handle the stress of the position?"
D) "What would you do if a subordinate threatened to sue the company for discrimination?"
Answer: A
11) What type of interview would most likely include the statement, "Tell me about a time when
you worked successfully in a team environment"?
A) situational
B) behavioral
C) puzzle
D) stress Answer: B

12) Which of the following statements is representative of what might be asked in a situational
interview?
A) "Tell me about a time you showed leadership in a difficult situation."
B) "Suppose you were confronted with an angry customer who threatened to sue the company.
What would you do?"
C) "Can you think of a time when you were especially proud of your management skills? Tell
me about that."
D) "In this position, you are responsible for hiring and firing subordinates. Have you ever fired
anyone before? Describe how you handled the situation."
Answer: B
13) What type of interview would most likely include the following statement? "Imagine that
you have just been assigned the task of winning the business of our competition's biggest client.
How would you proceed?"

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A) behavioral
B) stress
C) puzzle
D) situational Answer: D

14) In a stress interview, the interviewer _.

A) provides an applicant with a task to complete in a set amount of time
B) tries to make the applicant uncomfortable in order to spot sensitivity
C) gives a word problem to see how the candidate thinks under pressure
D) describes a hypothetical situation to assess how the applicant responds Answer: B
15) Which of the following questions would most likely be asked during a stress interview?
A) "I see that you switched colleges four times before finally earning your degree. I think that
reflects an inability to make good decisions and remain focused. What do you think?"
B) "Can you tell me about a time in the past when you used leadership skills to handle a
difficult situation?"
C) "Mike and Todd have $21 between them. Mike has $20 more than Todd has. How much
does Mike have and how much does Todd have?"
D) "Why are you leaving your current position and changing careers?" Answer: A

16) What type of interview would most likely include the following: "It must be difficult to
leave a company after such strong accusations of unethical behavior. Tell me about that"?
A) situational
B) behavioral
C) stress
D) puzzle Answer: C
17) Which of the following terms refers to a group of interviewers working together to question
and rate one applicant?
A) serial interview
B) board interview
C) sequential interview
D) mass interview Answer: B

18) Kevin is interviewing for a position as a public relations specialist in a communications

firm. He first meets with the HR manager. Afterwards, he meets with the department manager.
Finally, he meets with the company president. Kevin is most likely experiencing a interview.
A) board
B) panel
C) serial
D) mass Answer: C
19) In a interview, a panel questions several candidates simultaneously.
A) formal

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B) topical
C) panel
D) mass Answer: D

20) Dr. Ross is interviewing for a position as Assistant Professor of Biology. His interview is
conducted by a team of other faculty members in the department who interview him simultaneously
and then combine their ratings into one score. This is an example of a
interview.
A) serial
B) panel
C) one-on-one
D) mass Answer: B
21) An employer can most likely increase the reliability of a panel interview by .
A) using an unstructured interview format
B) interviewing multiple candidates simultaneously
C) providing interviewers with scoring sheets and sample answers
D) requiring candidates to participate in work sampling techniques Answer: C

22) Ellen is interviewing along with several other talented candidates for a position as a
journalist at a newspaper. A team of interviewers will meet with all the candidates at once. The
team will pose problems to the candidates and see which candidate takes the lead in formulating an
answer. This is most likely an example of a interview.
A) serial
B) board
C) mass
D) panel Answer: C
23) With phone and tablet video functionalities FaceTime™ and Skype™, Web-based "in-
person" interview use is widespread; In a recent year about of candidates took such
interviews .
A) 2%
B) 7%
C) 18%
D) 45%
Answer: C

24) All of the following are common characteristics of computerized selection interviews
EXCEPT .
A) questions presented rapidly
B) response times measured for any delays
C) questions focused on experience and skills
D) essay questions based on hypothetical situations Answer: D

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25) Career FAQs lists things that interviewees should keep in mind when doing an online video
interview. Which of the following is NOT one of them?
A) clean up the room
B) use a new computer
C) do a dry run
D) look presentable Answer: B
26) Which of the following interview formats will most likely result in the highest validity?
A) structured, situational
B) unstructured, situational
C) structured, behavioral
D) unstructured, behavioral Answer: A
Situational interviews yield a higher mean validity than do job-related or behavioral interviews,
which in turn yield a higher mean validity than do "psychological" interviews, which focus more on
motives and interests.

27) The primary purpose of conducting a stress interview is to determine .

A) why an applicant wants to work for the firm
B) how an applicant solves complex problems
C) why an applicant lied on the resume
D) how an applicant handles criticism Answer: D
28) Which of the following statements is most likely true?
A) Interpersonal skills are difficult to judge from phone interviews.
B) Phone interviews can generate spontaneous answers from candidates.
C) Candidates prefer phone interviews more than face-to-face interviews.
D) Interviewers usually judge candidates the same in phone and face-to-face interviews.
Answer: B

29) Which of the following is a common characteristic of computerized interviews?

A) multiple-choice questions
B) puzzle questions
C) follow-up questions
D) open-ended questions Answer: A

30) Which of the following most likely combines aspects of behavioral and situational
questioning?
A) computerized interviews
B) panel interviews
C) mass interviews
D) case interviews Answer: D
31) The primary purpose for conducting a case interview is to .

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A) provide a candidate with a realistic job preview

B) form a realistic assessment of a candidate's skills
C) ensure that a candidate's needs are expressed
D) determine how a candidate handles criticism Answer: B

32) Nondirective interviews follow no set format so the interviewer can ask follow-up questions
and pursue points of interest as they develop.
33) Nonstructured interviews are preferred to directive interviews because they are more
reliable and valid.

34) Behavioral interviews ask interviewees to describe how they would react to a hypothetical
situation at some point in the future.
35) In a stress interview, the interviewer seeks to make the applicant uncomfortable with rude
questions.

36) Studies suggest that interviewers tend to evaluate applicants less favorably in telephone
interviews than in face-to-face interviews.
Chapter: 7

37) A computerized selection interview presents a series of multiple-choice questions regarding

background, experience, education, skills, knowledge, and work attitudes.

38) What three ways can selection interviews be classified? How does each classification affect
an interview?
Answer: Selection interviews can be classified according to 1) how structured they are, 2) their
content, and 3) how they are administered. Structure can range from unstructured to structured.
Content classifications are situational or behavioral. Examples include job-related interviews and
stress interviews. Interviews can be administered by one person or by a panel of interviewers.
Chapter: 7

39) In a brief essay, discuss the effect of modern communications technology on interviews.
Answer: More employers and job interviewees are using iPhone and Web cams to conduct job
interviews. Firms have long used the Web to do selection interviews (particularly the initial,
prescreening interviews), and with the widespread use of Skype™-type products, their use is
growing. Most firms do not eliminate face-to-face interviews, but the video interviews do reduce
travel and recruiting expenses, and make things easier for candidates. With employers cutting their
recruitment budgets, more are conducting at least the initial screening interviews over the Internet.
40) Which of the following traits is most likely to be assessed accurately during an interview?

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A) intelligence
B) agreeableness
C) conscientiousness
D) emotional stability Answer: B

41) According to studies, which of the following has the most influence on the outcome of a job
interview?
A) thank-you notes sent from the candidate to the interviewer
B) an interviewer's first impression of the candidate
C) favorable information about the candidate
D) a candidate's extroverted personality Answer: B
42) Which of the following refers to an error of judgment on the part of the interviewer due to
interviewing one or more very good or very bad candidates just before the interview in question?
A) context error
B) contrast error
C) recency error
D) primacy error Answer: B

43) During an interview, Tanya discusses her numerous accomplishments at previous jobs and
praises the interviewer frequently. Tanya is most likely using .
A) impression management
B) talent management
C) mixed motives
D) behavior modification Answer: A
44) When interviewing an applicant with a disability who uses assistive technology, which of
the following questions should NOT be asked?
A) Have you ever experienced any problems between your technology and an employer's
information system?
B) How have you addressed any barriers or obstacles that you may have encountered in
previous jobs?
C) What is the severity and exact nature of your disability and how does the technology assist
you?
D) What specific technology have you successfully used in previous jobs that facilitated your
work?
Answer: C

45) Which of the following terms refers to individuals asked by the EEOC to apply for
employment which they do not intend to accept, for the sole purpose of uncovering unlawful
discriminatory hiring practices?
A) spies
B) moles

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C) testers
D) insiders Answer: C
46) Which of the following best describes telegraphing during an interview?
A) drawing out the most useful information from an applicant
B) searching for hidden meanings in an applicant's answers
C) smiling at an applicant to suggest a desired answer
D) allowing an applicant to dominate an interview Answer: C

47) Which of the following characteristics of an interview would most likely raise concerns
about interview discrimination?
A) job-related questions
B) multiple interviewers
C) subjective interview questions
D) standardized interview administration Answer: C
48) Which of the following applicant characteristics is LEAST likely to be assessed accurately
during a selection interview?
A) extroversion
B) agreeableness
C) job knowledge
D) conscientiousness Answer: D
Chapter: 7

49) Which of the following would most likely increase candidate-order errors?
A) applicant gender
B) recruiting pressure
C) poor first impression
D) lack of job knowledge Answer: B
50) First impressions created from a candidate's application forms or personal appearance rarely
affect interviewer ratings of candidates.

51) Candidates who make an initial bad impression on an interviewer are typically able to
reverse the situation if they close the interview in a strong manner.

52) Employers typically base decisions on false impressions and stereotypes when they fail to
clarify in advance what traits and knowledge are necessary for a specific job.
53) Interviewers tend to rate candidates who promote themselves and use impression
management tactics more poorly on candidate-job fit.

54) When interviewing disabled people, interviewers tend to avoid directly addressing the
disability, which limits an interviewer's opportunity to adequately determine whether or not a
candidate can perform the job.

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55) Under the Americans with Disabilities Act an interviewer must limit his or her questions to
whether an applicant has any physical or mental impairment that may interfere with his or her
ability to perform the job's essential tasks.
56) The EEOC uses testers who apply for employment which they do not intend to accept for
the purpose of uncovering unlawful discriminatory hiring practices.

57) Because EEOC testers are not really seeking employment, they do not have legal standing in
court to charge unlawful discriminatory hiring practices.
Chapter: 7

58) Research indicates that interviewers typically have negative reactions towards candidates
who are wheelchair-bound.
59) How can a firm protect itself from charges of discrimination in its interview process? What
is the role of testers in employment discrimination?
Answer: It is best that employment interviewers refrain from asking questions regarding an
applicant's race, color, religion, sex, age, national origin, or handicap. Even when it may not be
illegal (as in the case of age or marital status), the EEOC disapproves of such practices. In addition,
employers should ensure that the interview process is structured and consistently applied. The
interview should have objective, job-related questions and be administered in a standardized format.
There should be multiple interviewers. Employers can also reassure candidates that the job
interview process is fair, treat the interviewees with respect, and be willing to explain the process
and the rationale for the interview questions. Testers are used to determine whether or not
employment discrimination is occurring at a specific business. They make nondiscriminatory
interviewing practices even more important to employers. As defined by the EEOC, testers are
"individuals who apply for employment which they do not intend to accept, for the sole purpose of
uncovering unlawful discriminatory hiring practices." Although they're not really seeking
employment, testers have legal standing with the courts and with the EEOC.

60) How do nonverbal behaviors and impression management affect an interview?

Answer: An applicant's nonverbal behavior and use of impression management can have a large
impact on his or her rating. Interviewers tend to respond more positively to candidates showing
more extroverted behavior like good eye contact and high energy. Even smiling can affect
interviewer ratings of candidates. Interviewers infer the interviewee's personality from the way he
or she acts in the interview.
61) What are some common errors that managers make during interviews and what impact can
they have?
Answer: Potential interviewing errors to avoid include:
• First impressions (snap judgments)
• Not clarifying what the job involves and requires
• Candidate-order error and pressure to hire

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• Nonverbal behavior and impression management

• The effects of interviewees' personal characteristics
Chapter: 7

62) What is the best way to avoid most interview errors?

A) conduct panel interviews
B) use a structured interviewing format
C) utilize computerized interviewing technology
D) ask only situational questions during the interview Answer: B
63) George Reyes has recently been hired as the vice president of marketing at Great Toys, a
mid-size firm that specializes in classic wooden toys. The CEO of Great Toys wants to expand the
firm's presence in the toy market, which is highly competitive. As a result, the marketing
department's budget has been significantly increased. George plans to use some of the additional
funds to hire a new media planner. George is considering the idea of conducting a structured
situational interview in the hiring process.

Which of the following, if true, best supports the argument that George should use a structured
situational interview to hire a media planner?
A) Great Toys' HR department has developed a job description for the new media planner
position.
B) Great Toys' competitors typically face legal issues in the hiring process stemming from the
ADA.
C) Great Toys' employees typically remain with the company for many years because they feel
comfortable with the organizational culture.
D) Great Toys' executives want to ensure that the interview process is fair to all candidates and
that the best candidate is hired.
Answer: D
64) George Reyes has recently been hired as the vice president of marketing at Great Toys, a
mid-size firm that specializes in classic wooden toys. The CEO of Great Toys wants to expand the
firm's presence in the toy market, which is highly competitive. As a result, the marketing
department's budget has been significantly increased. George plans to use some of the additional
funds to hire a new media planner. George is considering the idea of conducting a structured
situational interview in the hiring process.

Which of the following most likely undermines the argument that George should use a structured
situational interview to hire a media planner?
A) The HR department prefers handling job evaluations without the assistance of managers.
B) George and the HR manager lack the time required to participate in a lengthy interview
process.
C) George worked as a media planner at another firm and is familiar with the tasks involved in
the job.

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D) Great Toys has used headhunters in the past to fill executive-level positions at the firm.
Answer: B

65) A series of job-relevant questions with predetermined answers that interviewers ask of all
applicants for a job is known as a .
A) nondirective situational interview
B) structured behavioral interview
C) nondirective behavioral interview
D) structured situational interview Answer: D
66) When developing a structured situational interview, the first step in the process is .
A) rating the job's main duties
B) creating interview questions
C) analyzing the job
D) creating benchmark answers Answer: C

67) What is the second step in the procedure for developing a guide for a structured situational
interview?
A) rate the job's main duties
B) create interview questions
C) create benchmark answers
D) appoint the interview panel Answer: A

68) In a structured situational interview, interview questions should primarily address .

A) essential job duties
B) occupational benefits
C) salary requirements
D) personality issues Answer: A
Chapter: 7
69) After creating questions for a structured situational interview, _ need to be developed
for scoring purposes.
A) grade definitions
B) alternative rankings
C) benchmark answers
D) human resource metrics Answer: C
Chapter: 7

70) Which of the following is a true statement regarding structured situational interviews?
A) Answers are compared to industry standards.
B) Hypothetical questions are typically avoided.
C) Job descriptions are written after the interview.
D) Interviews are usually conducted by a panel. Answer: D

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71) Which of the following is an example of a job knowledge question?

A) "What are the legal restrictions regarding the use of telemarketing for consumers who have
a past relationship with a company?"
B) "Suppose you were confronted with an angry customer who threatened to sue the company.
What would you do?"
C) "Mike and Todd have $21 between them. Mike has $20 more than Todd has. How much has
Mike and how much has Todd?"
D) "Can you tell me about a time in the past when you used leadership skills to handle a
difficult situation?"
Answer: A

72) How many interviewers usually make up a panel interview?

A) 1
B) 2
C) 3-6
D) 8-10
Answer: C
73) What is the first step in conducting an effective interview?
A) knowing the job
B) developing relevant questions
C) establishing rapport with candidates
D) asking technical questions Answer: A

74) In order to conduct an effective interview, interviewers should NOT ask job candidates
about their .
A) knowledge
B) lifelong goals
C) willingness
D) motivation Answer: B
75) Which of the following is the most likely outcome of using the same questions with all
candidates being interviewed?
A) responses improved
B) weaknesses revealed
C) reliability limited
D) bias reduced Answer: D

76) Which question below is an example of a situational question?

A) "Suppose you were giving a sales presentation and a difficult technical question arose that
you could not answer. What would you do?"
B) "Based on your past work experience, what is the most significant action you have ever
taken to help out a co-worker?"

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C) "What work experiences, training, or other qualifications do you have for working in a
teamwork environment?"
D) "What factors should one consider when developing a television advertising campaign?"
Answer: A
77) Which question below is an example of a behavioral question?
A) "Can you tell me about a time when you solved a really difficult problem?"
B) "What is your attitude about working with a sales team instead of independently?"
C) "What factors do you consider before underwriting an insurance policy for a new client?"
D) "What are your long-term goals and aspirations as a social worker?" Answer: A

78) All of the following will most likely improve the structure of an interview EXCEPT
.
A) using the same questions for all candidates
B) rating candidate answers against a scale
C) asking candidates to describe themselves
D) using a standardized interview form Answer: C

79) Consider the question: "Can you provide an example of a specific instance where you
provided leadership in a difficult situation?" What type of question is this?
A) background question
B) behavioral question
C) situational question
D) job knowledge question Answer: B
Chapter: 7
80) Consider the question: "What factors should be considered when developing a customer
database?" What type of question is this?
A) background question
B) past behavior question
C) situational question
D) job knowledge question Answer: D

81) All of the following are guidelines for conducting an effective interview EXCEPT .
A) taking brief notes during the interview
B) scheduling a private room for the interview
C) showing courtesy and friendliness towards the candidate
D) asking the candidate questions that require yes or no answers Answer: D

82) Which of the following is recommended advice for conducting an effective interview?
A) Telegraph the desired answer to the candidate.
B) Allow the candidate to control the interview.
C) Ask the candidate for specific examples.

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D) Ask the candidate about work-related injuries. Answer: C

83) Which of the following best explains why most firms do not provide rejected applicants
with detailed explanations about the employment decision?
A) lack of technical abilities
B) adherence to federal laws
C) concerns about legal disputes
D) time required of line managers Answer: C

84) Marion Franklin is the CEO of a local real estate company, Action Realty. The community
has seen an increase in population over the last two years, and new neighborhoods are being built as
a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although
Marion has hired agents in the past, they have not always turned out to be as successful as she had
hoped. Marion is considering making changes to the way she interviews job candidates.

Which of the following best supports the argument that Marion should use structured interviews?
A) Marion likes applicants to evaluate themselves and to describe their goals.
B) Marion is viewed as a fair employer by most of her subordinates.
C) Marion lacks highly effective interviewing skills.
D) Marion's best agent has recently retired. Answer: C
85) Marion Franklin is the CEO of a local real estate company, Action Realty. The community
has seen an increase in population over the last two years, and new neighborhoods are being built as
a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although
Marion has hired agents in the past, they have not always turned out to be as successful as she had
hoped. Marion is considering making changes to the way she interviews job candidates.

Which of the following would most likely improve the reliability and validity of Marion's selection
process?
A) asking all applicants the same questions
B) holding Web-assisted interviews with candidates
C) conducting stress interviews by a group of interviewers
D) using the speed dating approach to interviewing applicants Answer: A

86) Marion Franklin is the CEO of a local real estate company, Action Realty. The community
has seen an increase in population over the last two years, and new neighborhoods are being built as
a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although
Marion has hired agents in the past, they have not always turned out to be as successful as she had
hoped. Marion is considering using the streamlined interview process to hire a new real estate
agent.

Which of the following questions would be most relevant for Marion to ask if she wants an
employee with extensive knowledge in real estate?

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A) How do you handle sellers who believe their home is more valuable than it really is?
B) What are the loan options you would suggest for first-time home buyers?
C) What is the most frustrating aspect of being a realtor?
D) What motivated you to become a real estate agent? Answer: B
87) Which type of interview questions are most likely designed to probe an applicant's
motivation to meet the job's requirements through activities such as physical labor, customer
service, and frequent travel?
A) willingness
B) behavioral
C) personality
D) job knowledge Answer: A

88) Antone is applying for a job with Boscom Manufacturing as a chemical engineer. During the
interview, Antone is asked the following question: "How does extreme heat affect hydrochloric
acid?" The interviewer is most likely trying to assess Antone's .
A) motivation
B) flexibility
C) knowledge
D) leadership Answer: C
89) The following are interviewing errors to avoid EXCEPT .
A) asking prepared questions
B) first impressions
C) pressure to hire
D) not clarifying what the job involves Answer: A

90) A manager who begins an interview by asking the applicant about the weather is most likely
attempting to .
A) seek a spontaneous answer from the candidate
B) identify the candidate's leadership abilities
C) assess the candidate's interpersonal skills
D) put the candidate at ease Answer: D

91) Interviewers tend to be more influenced by unfavorable than favorable information about a
candidate.
92) A structured behavioral interview contains a series of hypothetical job-oriented questions
with predetermined answers that interviewers ask of all applicants for the job.

93) When developing a structured situational interview, it is important that people familiar with
the job rate the job's main duties based on importance and time.

94) Structured situational interviews contain situational questions, job knowledge questions, and

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willingness questions but not behavioral questions.

95) Companies generally conduct structured situational interviews using a panel, rather than
sequentially.

96) Interviews can be made more effective if the interviewer studies the job description and uses
a standardized interview form.

97) When rejecting a job candidate, it is best to refrain from providing an explanation detailing
the reason for the rejection because most candidates view an employer more positively when they
don't know the reason for the rejection.
98) In a brief essay, discuss the differences between structured situational interviews and
nondirective interviews.
Answer: The structured situational interview is a series of job-related questions with predetermined
answers that interviewers ask of all applicants for the job. Steps in creating a structured situational
interview include analyzing the job, rating the job's main duties, creating interview questions,
creating benchmark answers, and appointing the interview panel and conducting interviews. In
unstructured (or nondirective) interviews, the manager follows no set format. A few questions
might be specified in advance, but they're usually not, and there is seldom a formal guide for
scoring "right" or "wrong" answers. This type of interview could even be described as little more
than a general conversation.

99) In a brief essay, discuss the three main types of questions that are frequently used in
structured situational interviews. Explain the purpose of each question type and provide an example
of each.
Chapter: 7

100) As an HR manager, you will most likely interview job candidates. What actions can you
take to ensure that an interview is effective?
Chapter: 7
101) What are profiles? What role do profiles play in the employee selection process?
Answer: Profiles are the competencies, traits, knowledge and experience needed for a position.
Talent management involves using the same profile for recruiting as for selecting, training,
appraising, and paying the employee. Profiles can play an important role in employee selection.
Managers can use a job's profile to formulate job-related situational, behavioral, and knowledge
interview questions when selecting someone for a job or set of roles. Selecting employees based on
a specific profile helps to ensure that an employer focuses questions on the things that someone
must be proficient at to do the job successfully.

102) A total selection program has the goal of selecting candidates whose totality of attributes
best fits the employer's requirements.

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103) Deciding who to extend a job offer to in the judgmental approach quantifies all the evidence
and perhaps uses a formula to predict job success.
104) What are some considerations and parameters an employer should do in developing and
extending a job offer?
Answer: The employers can extend an actual job offer to the candidate verbally and then offer up in
writing. The employer's point person would discuss the offer's main parameters, for instance in
terms of pay rates, benefits, and actual job duties. There may be some negotiations. Once an
agreement is reached, the employer would extend a written job offer to the candidate. There are
several issues to consider with the written offer. In the job offer letter, the employer lists the offer's
basic information. This typically starts with a welcome sentence. It then includes job specific
information (such as details on salary and pay), benefits information, paid leave information, and
terms of employment (including, for instance, successful completion of job testing and physical
exams). There should be a strong statement that the employment relationship is "at will." There is
then a closing statement. This again welcomes the employee, mention who the employer's point
person should be if any questions arise, and instruct the candidate to sign the letter of offer if it is
acceptable. It is prudent to have an attorney review the offer before extending it.
Human Resource Management, 15e (Dessler)
Chapter 6 Training and Developing Employees (Chap 6 trong slide)

1) On Alicia's first day of work at a software firm, she attended a meeting with the HR
manager and other new employees. Alicia learned about employee benefits packages, personnel
policies, and the structure of the company. In which of the following did Alicia most likely
participate?
A) recruitment
B) selection
C) employee orientation
D) employee development Answer: C

2) Which of the following terms refers to helping new employees appreciate the values and
culture of a firm?
A) onboarding
B) outsourcing
C) organizing
D) offshoring Answer: A
3) Which of the following is most likely NOT one of the goals of a firm's employee orientation
program?
A) making new employees feel like part of a team
B) helping new employees become socialized into the firm
C) assisting new employees in selecting the best labor union
D) teaching new employees about the firm's history and strategies Answer: C

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4) All of the following topics are typically addressed during employee orientation EXCEPT
.
A) employee benefits
B) personnel policies
C) work behavior expectations
D) wage curves Answer: D

5) What is the purpose of employee orientation? What role does training play in employee
orientation?
Answer: New employees should feel welcome and at ease. New employees should understand the
organization in a broad sense including its past, present, culture, and vision for the future. They
should be clear about what is expected in terms of work and behavior. They should have begun the
socialization process into the firm's way of doing things. Directly after orientation, training should
begin. Training means giving new or current employees the skills they need to perform their jobs.

6) The methods used to give new or present employees the skills they need to perform their
jobs are called .
A) orientation
B) training
C) development
D) management Answer: B
7) MTR Enterprises failed to provide adequate safety training to one of its employees. As a
result, the employee harmed a customer. A court would most likely find MTR liable for
.
A) discrimination
B) negligent training
C) occupational fraud
D) hazardous training Answer: B

8) Which of the following will most likely NOT help employers protect themselves against
charges of negligent training?
A) confirming an employee's claims of skill and experience
B) providing extensive and appropriate training
C) evaluating the effectiveness of the training
D) paying employees for their training time Answer: D
9) identifies the training employees will need to fill future jobs.
A) Competency modeling
B) Performance analysis
C) Strategic training needs analysis
D) Screening Answer: C

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10) What is the first step in the ADDIE training process?

A) assessing the program's successes
B) appraising the program's budget
C) analyzing the training need
D) acquiring training materials Answer: C

11) What is the second step in the ADDIE training process?

A) developing training aids
B) defining the training objectives
C) designing the overall training program
D) designating employees who need training Answer: C
12) Which of the following will most likely occur during the third step of the ADDIE training
process?
A) training a targeted group
B) creating training materials
C) evaluating the success of the program
D) estimating a budget for the training program Answer: B

13) Which of the following would most likely occur during the fourth step of the ADDIE
training process?
A) holding on-the-job training sessions
B) selecting employees for training
C) preparing online training materials
D) asking participants for feedback Answer: A

14) What is the final step in the ADDIE training process?

A) evaluating the program's successes or failures
B) rewarding employees for program participation
C) conducting a budget and needs analysis
D) training the targeted group of employees Answer: A

15) James, an HR manager, is currently identifying the specific knowledge and skills required
for a telemarketing position at Newman Enterprises. James is most likely involved in which of the
following?
A) task analysis
B) program evaluation
C) employee development
D) screening Answer: A

16) Amy, an accounting supervisor, has been asked to provide training for her subordinates
about new tax laws. In order to motivate the individuals who attend her training session, Amy

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should most likely do all of the following EXCEPT .

A) use as many visual aids as possible during the session
B) provide an overview of the material to be covered
C) use new terminology and technical concepts
D) give information in logical, meaningful sections Answer: C
17) Trainees should be provided adequate practice and be allowed to work at their own pace
during a training session in order to .
A) screen applicants based on ability
B) transfer skills more easily to the job
C) reduce training costs
D) determine appropriate pay scales Answer: B

18) is a detailed study of the job to determine what specific skills the job requires.
A) Needs analysis
B) Task analysis
C) Training strategy
D) Development planning Answer: B

19) Which of the following consolidates information regarding required tasks and skills in a
format that is helpful for determining training requirements?
A) training assessment form
B) task analysis record form
C) organizational skills sheet
D) work function analysis Answer: B
20) Employers will most likely use all of the following methods to identify training needs for
new employees EXCEPT .
A) analyzing job descriptions
B) reviewing performance standards
C) questioning current job holders
D) conducting a work sampling Answer: D

21) A graphic model that presents a precise overview of the knowledge, skills, and behaviors
someone would need to perform a job well is known as a(n) .
A) scatter plot
B) competency model
C) classification table
D) organizational chart Answer: B
22) The process of verifying that there is a performance deficiency and determining if such
deficiencies should be corrected through training or through some other means is called
.
A) needs analysis

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B) training assessment
C) performance analysis
D) performance appraisal Answer: C

23) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of
ten employees. Members of Mark's sales force vary in experience level. Four members of the sales
team have worked at Samson for less than one year. The other six salespeople have been with
Samson anywhere from three to seven years. Mark recently received the annual sales report and
noticed that sales have been dropping steadily over the last year. Mark is considering the idea of
providing training to his sales team as a way to boost sales.

Which of the following best supports the argument that the drop in Samson's sales can be solved
through training?
A) Attitude surveys sent to Samson personnel suggest that the firm's elimination of year-end
bonuses has angered many employees.
B) Recent studies suggest that sales of name-brand pharmaceuticals, such as Samson, are
dropping as more people are choosing to use generic drugs instead.
C) The rising costs associated with college recruiting have forced Samson to hire sales
associates through online job sites.
D) Members of the sales team have expressed that they do not fully understand the benefits and
side effects of the latest medications released by Samson.
Answer: D
24) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of
ten employees. Members of Mark's sales force vary in experience level. Four members of the sales
team have worked at Samson for less than one year. The other six salespeople have been with
Samson anywhere from three to seven years. Mark recently received the annual sales report and
noticed that sales have been dropping steadily over the last year. Mark is considering the idea of
providing training to his sales team as a way to boost sales.

Which of the following most likely undermines the argument that the drop in Samson's sales can be
solved through training?
A) The newest members of the Samson sales force are unfamiliar with the procedures used by
the firm to measure the effectiveness of new drugs.
B) Samson recently eliminated its long-standing policy of paying salespeople commissions on
top of base salaries, which angered employees.
C) Samson's most experienced salesperson retired after working at the firm for more than
twenty years.
D) Samson sales team members recently received their annual performance appraisals. Answer:
B
25) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of
ten employees.

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Members of Mark's sales force vary in experience level. Four members of the sales team have
worked at Samson for less than one year. The other six salespeople have been with Samson
anywhere from three to seven years. Mark recently received the annual sales report and noticed that
sales have been dropping steadily over the last year. Mark is considering the idea of providing
training to his sales team as a way to boost sales.

All of the following questions are relevant to Mark's decision to implement a training program for
his sales team EXCEPT:
A) What methods are used for recruiting and interviewing individuals for sales positions?
B) Does every salesperson understand what his or her performance standards are?
C) What tools are available to sales team members to help them work efficiently?
D) What were the results of attitude surveys distributed to the sales team? Answer: A

26) Which of the following best describes the first step in a performance analysis?
A) comparing a person's actual performance to the ideal performance
B) investigating employee-related customer complaints
C) evaluating supervisor performance reviews
D) conducting job knowledge assessments Answer: A

27) What are the four steps involved in the training process? After a training program has been
established, how can managers make the training material more meaningful for employees?
Answer: Training programs consist of four steps. In the first, needs analysis step, you identify the
specific knowledge and skills the job requires, and compare these with the prospective trainees'
knowledge and skills. In the second, instructional design step, you formulate specific, measurable
knowledge and performance training objectives, review possible training program content
(including workbooks, exercises, and activities), and estimate a budget for the training program.
The third step is to implement the program, by actually training the targeted employee group using
methods such as on-the-job or online training. Finally, in an evaluation step, you assess the
program's success. There are five suggestions for making training material more meaningful for
employees. First, an overall picture of the training material that will be presented should be
provided at the start of training. Second, familiar examples should be used. Third, the information
should be logically organized and presented. Fourth, the vocabulary used during training should be
familiar to the trainees. Fifth, many visual aids should be used.
28) What is the difference between a task analysis and a performance analysis? What is the
purpose of each in regards to training?
Answer: Task analysis is a detailed study of the job to determine what specific skills—like Java (in
the case of a Web developer) or interviewing (in the case of a supervisor)—the job requires. Job
descriptions and job specifications are important here. These list the job's specific duties and skills,
which are the basic reference points in determining the training required. For under- performing
current employees, you can't assume that training is the problem: Is it lack of training, or something
else? Performance analysis is the process of verifying that there is a performance deficiency and

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determining whether the employer should correct such deficiencies through training or some other
means (like transferring the employee). The first step in performance analysis is usually to compare
the person's actual performance to what it should be. Doing so helps to confirm that there is a
performance deficiency and may also help the manager to identify its cause.

29) Tyler, a new accounts representative at Martin Marketing, is learning the job by actually
doing job-related tasks such as contacting customers. Tyler is most likely participating in
.
A) on-the-job training
B) socialization
C) social learning
D) modeling Answer: A
30) Which of the following training methods is most frequently used by employers?
A) job instruction training
B) apprenticeship training
C) on-the-job training
D) classroom training Answer: C

31) All of the following are types of on-the-job training EXCEPT .

A) programmed learning
B) understudy method
C) special assignments
D) job rotation Answer: A

32) Rebekah was hired soon after graduation and assigned to complete a management trainee
program. She will move to various jobs each month for a nine-month period of time. Her employer
is utilizing the form of training.
A) job rotation
B) understudy
C) job expansion
D) informal learning Answer: A
33) Mario hopes to be promoted to the head of his department next year. In the meantime, he
has been assigned to spend a year as an assistant to the current department head. Which type of
training is most likely being used in this example?
A) job rotation
B) job instruction
C) coaching method
D) informal learning Answer: C

34) The on-the-job method of involves give lower-level executives firsthand experience
in working on actual problems.

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A) coaching
B) informal learning
C) special assignments
D) programmed learning Answer: C

35) John is doing a training method to learn a new job where there are sequence of steps he is
supposed to learn step-by-step. This method is called:
A) task analysis
B) job instruction training (JIT)
C) informal learning
D) job rotation Answer: B
36) Surveys estimate that as much as X% of what employees learn on the job they learn through
informal means.
A) 10%
B) 50%
C) 80%
D) 95%
Answer: C

37) A structured process by which people become skilled workers through a combination of
classroom instruction and on-the-job training is called .
A) job instruction training
B) programmed learning
C) apprenticeship training
D) coaching technique Answer: C
38) Which form of on-the-job training usually involves having a learner study under the
tutelage of a master craftsperson?
A) programmed learning
B) mentoring
C) apprenticeship training
D) coaching Answer: C

39) John is currently being trained on the job and is at the first step in the OTJ process, which is:
A) showing the trainee how do the task
B) verbalizing the steps of the task
C) checking to make sure the task was learned by the trainee
D) familiarizing the trainee with equipment, tools, and trade terms Answer: D

40) When jobs consist of a logical sequence of steps and are best taught step-by-step, the
most appropriate training method to use is .
A) job instruction training

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B) apprenticeship training
C) programmed learning
D) job rotation Answer: A
41) With job instruction training, which of the following should most likely be included
beside each step listed?
A) sources for more information
B) any legal requirements
C) key points or guidelines
D) quality requirements Answer: C

42) Which of the following is the primary advantage of lecturing as a method of training?
A) motivational for employees
B) effective for informal learning
C) appropriate for large groups
D) requires limited preparation Answer: C
43) Which of the following will most likely help a speaker improve the effectiveness of a
training lecture?
A) opening with a familiar joke
B) talking from a prepared script
C) watching the audience's body language
D) using exaggerated hand gestures to emphasize points Answer: C

44) Which of the following is a systematic method for teaching job skills that involves
presenting questions or facts, allowing the person to respond, and giving the learner immediate
feedback on the accuracy of his or her answers?
A) job instruction training
B) programmed learning
C) apprenticeship training
D) simulated learning Answer: B

45) Which of the following is NOT an advantage of programmed learning?

A) Training time is significantly reduced.
B) Trainees can work at their own pace.
C) Trainees benefit from a skilled coach.
D) Trainees receive immediate feedback. Answer: C

46) Which of the following terms refers to computer-based training systems that adjust to
meet each trainee's specific learning needs?
A) virtual learning systems
B) video-based simulations
C) multi-media training plans

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D) intelligent tutoring systems Answer: D

47) Wells Fargo and Company is a financial services firm that provides banking, insurance, and
mortgage services at 10,000 stores nationwide. Wells Fargo offers its employees many professional
development opportunities such as training programs and tuition reimbursement. Wells Fargo
executives are considering the expansion of the firm's existing training programs after employees
have expressed strong interest in the idea.

Which of the following, if true, best supports the argument that Wells Fargo should use intelligent
tutoring systems to provide training for loan officers?
A) Current Wells Fargo employees indicate that they prefer to work at their own pace and
have a variety of learning styles.
B) Since Wells Fargo stores are spread throughout the country, the firm needs to provide
training at a central location to a large group of current employees at once.
C) Wells Fargo's employee orientation program provides new employees with information
about the history, culture, and vision of the firm.
D) Wells Fargo's board of directors sets training policies and works closely with HR to develop
the most appropriate training programs for new employees.
Answer: A

48) training is a method in which trainees learn on actual or simulated equipment

but are trained away from the job.
A) Vestibule
B) Virtual-reality
C) Programmed
D) Job instruction Answer: A
49) American Airlines uses flight simulators to train pilots about airplane equipment and safety
measures. This is an example of .
A) on-the-job training
B) vestibule training
C) virtual reality training
D) programmed learning Answer: B

50) Which of the following involves a trainer in a central location teaching groups of
employees at remote locations over cable broadband lines or the Internet?
A) audiovisual-based instruction
B) programmed learning
C) vestibule training
D) videoconferencing Answer: D
51) Travel agents at Apollo Travel Services follow a computer program that displays question
prompts and dialogue boxes with travel policies as the agent enters information about the
consumer's travel plans. This is an example of a(n) .

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A) audiovisual-based training method

B) electronic performance support system
C) intelligent tutoring system
D) computer-based training module Answer: B

52) are special software tools that support Internet training by helping employers
identify training needs, and to schedule, deliver, assess, and manage the online training itself.
A) Learning management systems
B) Intelligent tutoring systems
C) Computer simulations
D) Learning portals Answer: A
53) Which of the following terms refers to a set of instructions, diagrams, or similar methods
available at the job site to guide the worker?
A) task analysis record form
B) position replacement card
C) skills sheet
D) job aid Answer: D

54) United Airlines utilizes a checklist of things that pilots should do prior to take-off and
landing. This checklist is an example of a(n) .
A) job aid
B) skill sheet
C) work function analysis
D) electronic support system Answer: A
55) Wells Fargo and Company is a financial services firm that provides banking, insurance, and
mortgage services at 10,000 stores nationwide. Wells Fargo offers its employees many professional
development opportunities such as training programs and tuition reimbursement. Wells Fargo
executives are considering the expansion of the firm's existing training programs after employees
have expressed strong interest in the idea.

Which of the following, if true, best supports the argument that Wells Fargo should integrate
computer simulations into its training program for bank tellers?
A) The Wells Fargo intranet-based learning portal provides employees with access to a variety
of training courses.
B) Wells Fargo is one of the few financial institutions to require all employees to participate in
at least 30 hours of training each year.
C) Wells Fargo bank tellers use electronic performance support systems to assist them with
handling complicated bank transactions.
D) Employee surveys indicate that many Wells Fargo bank tellers are uncertain about the best
methods for handling angry customers.
Answer: D

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56) Which of the following terms refers to a section of an employer's Web site that provides
employees with online access to job-related training courses?
A) virtual classroom
B) videoconferencing
C) job simulation
D) learning portal Answer: D
57) Which of the following terms refers to a teaching method that uses special collaboration
software to enable multiple remote learners to participate in live audio and visual discussions via a
PC or laptop?
A) computer simulation
B) virtual classroom
C) intelligent tutoring system
D) learning portal Answer: B

58) All of the following are literacy training methods used by employers EXCEPT .
A) providing computerized simulations
B) assigning writing exercises to employees
C) holding math and reading classes at work
D) sending employees to adult education classes Answer: A
59) attempts to foster harmonious working relationships and to develop
cross-cultural sensitivity among the employees of a firm.
A) Adaptability screening
B) Multicultural simulation
C) Mandatory arbitration
D) Diversity training Answer: D

60) What is the primary purpose of implementing a cross training program at a firm?
A) compiling skills records
B) creating a diverse environment
C) facilitating flexible job assignments
D) assessing employee technical skills Answer: C
61) All of the following are characteristics of most interactive training programs, such as
simulations, EXCEPT .
A) mastery of learning
B) responsive feedback
C) increased learning time
D) increased retention rate Answer: C

62) In a brief essay, discuss how mobile devices, such as iPhones, are used by firms to facilitate
employee training.

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Answer: Mobile learning (or "on-demand learning") means delivering learning content on demand
via mobile devices like cell phones, laptops, and iPhones, wherever and whenever the learner has
the time and desire to access it. For example, using dominKnow's iPod touch and iPhone optimized
Touch Learning Center Portal, trainees can log in and take full online courses. Employers use
mobile learning to deliver corporate training and downloads on everything from how to close an
important sales deal to optimizing organizational change. Most large employers distribute internal
communications and training via mobile devices. Employers use mobile learning to deliver training
and downloads on topics "from how to close an important sales deal to optimizing organizational
change." IBM uses mobile learning to deliver just-in-time information (for instance, about new
product features) to its sales force. To facilitate this, its training department often breaks up, say, an
hour program into easier-to-use 10-minute pieces. Some employers use blogs to communicate
learning to trainees.
63) What is on-the-job training? What types of on-the-job training methods are most frequently
used by employers?
Answer: On-the-job training (OJT) means having a person learn a job by actually doing it. Every
employee, from mailroom clerk to CEO, gets on-the-job training when he or she joins a firm. In
many firms, OJT is the only training available. The types of on-the-job training include the
coaching or understudy method, the job rotation method, and the special assignments method.
Using the understudy method, an experienced worker or the trainee's supervisor trains the
employee. At lower levels, the trainee might observe the supervisor, but it is also used at higher
levels. Job rotation means that an employee moves from job to job at planned intervals. This is
common in management training programs. Special assignments give employees firsthand
experience in working on actual problems.

64) Describe elements of computer-based training and why it can be effective.

Answer: Computer-based training refers to training methods that use interactive computer-based
systems to increase knowledge or skills. For example, employers use CBT to teach employees safe
methods for avoiding falls. The system lets trainees replay the lessons and answer questions, and is
especially effective when paired with actual practice under a trainer's watchful eye.
Computer-based training is increasingly realistic. For example, interactive multimedia training
integrates the use of text, video, graphics, photos, animation, and sound to create a complex training
environment with which the trainee interacts. In training a physician, for instance, such a system
lets a medical student take a hypothetical patient's medical history, conduct an examination, and
analyze lab tests. The student can then interpret the sounds and draw conclusions for a diagnosis.
Virtual reality training takes this realism a step further, by putting trainees into a simulated
environment.
65) What is programmed learning and why is it used in organizations?
Answer: Programmed learning is a step-by-step self-learning method using a medium such as a
textbook, computer, or the Internet. The three parts of the method include presenting questions,
facts, and problems to the learner, allowing the person to respond, and then providing feedback on
the accuracy of answers. Programmed learning reduces training time. It also facilitates learning by

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letting trainees learn at their own pace, get immediate feedback, and reduce their risk of error. Some
argue that trainees do not learn much more from programmed learning than from a textbook. Yet
studies generally support programmed learning's effectiveness. In addition to the usual programmed
learning, computerized intelligent tutoring systems learn what questions and approaches worked
and did not work for the learner, and then adjust the instructional sequence to the trainee's unique
needs.

66) Any attempt to improve managerial performance by imparting knowledge, changing

attitudes, or increasing skills is called .
A) human resource management
B) performance enhancement
C) management development
D) talent management Answer: C
67) Which process involves assessing the company's strategic needs, appraising the current
performance of managers, and building skills of managers?
A) management development
B) performance management
C) strategic management
D) management by objectives Answer: A

68) All of the following are on-the-job training methods used for managerial positions
EXCEPT .
A) job rotation
B) action learning
C) case study method
D) understudy approach Answer: C
69) Which of the following enables management trainees to work full-time analyzing and
solving problems in other departments?
A) management games
B) action learning
C) role playing
D) job rotation Answer: B

70) Eric is in a group with five other management trainees at Coca-Cola. Eric's group is
competing against other management trainees at the firm in a simulated marketplace. Each group
must decide how much to spend on advertising and how many products to manufacture over the
next three years. In which of the following activities is Eric most likely participating?
A) on-demand learning
B) apprenticeship training
C) management games
D) behavior modeling Answer: C

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71) Both action learning and management games require trainees to work in groups. In a brief
essay, explain the similarities and differences between the two management development
techniques.
Answer: Action learning programs give managers and others released time to work analyzing and
solving problems in departments other than their own. The basics include carefully selected teams
of 5 to 25 members, assigning the teams real-world business problems that extend beyond their
usual areas of expertise, and structured learning through coaching and feedback. The employer's
senior managers usually choose the projects and decide whether to accept the teams'
recommendations. With computerized management games, trainees divide into five- or six- person
groups, each of which competes with the others in a simulated marketplace. Each group typically
must decide, for example, (1) how much to spend on advertising, (2) how much to produce, (3) how
much inventory to maintain, and (4) how many of which product to produce. Usually, the game
compresses a two- or three-year period into days, weeks, or months. As in the real world, each
company team usually can't see what decisions (such as to boost advertising) the other firms have
made, although these decisions do affect their own sales.
72) According to Kurt Lewin, in order for organizational change to occur, which stage must
occur first?
A) unfreezing
B) moving
C) refreezing
D) freezing Answer: A

73) According to Kurt Lewin, all of the following should occur in the moving stage of
organizational change EXCEPT .
A) developing a vision
B) mobilizing commitment
C) consolidating gains
D) creating a leading coalition Answer: B
74) is an approach to organizational change in which the employees formulate the
change that's required and implement it.
A) Action research
B) Succession planning
C) Organizational development
D) Participative talent management Answer: C

75) means collecting data about a group, department, or organization, and feeding the
information back to the employees so they can analyze it and develop hypotheses about what the
problems might be.
A) Laboratory training
B) Action research

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C) Group therapy
D) Diversity training Answer: B
76) Which organizational development application involves methods like performance
appraisals, reward systems, and diversity programs?
A) human process
B) strategic applications
C) technostructural
D) human resource management Answer: D

77) In a brief essay, discuss the theory behind Kurt Lewin's model of change. According to
Lewin, what is the process that should be followed to implement organizational change?
Answer: According to Lewin, all behavior in organizations is a product of two kinds of forces—
those striving to maintain the status quo and those pushing for change. Implementing change means
either weakening the status quo forces or building up the forces for change. Lewin's change process
consists of three steps: 1) unfreezing the forces that seek to maintain the status quo, 2) moving to
develop new behaviors and attitudes, and 3) refreezing the organization into its new system to
prevent it from reverting to its old ways.

78) What is meant by the idea of organizational change? How does organizational development
facilitate organizational change?
Answer: Managers can change one or more of five aspects of their companies—their strategy,
culture, structure, technologies, or the attitudes and skills of the employees. Organizational change
often begins with a change in the firm's strategy, mission, and vision—with strategic change.
However, strategic, cultural, structural, and technological changes will fail without the employees'
active support. Organizational change therefore invariably involves bringing about changes in the
employees themselves and in their attitudes, skills, and behaviors. Unfortunately, getting that active
support (or at least silent compliance) from your employees is easier said than done. The manager
invariably runs into employee resistance. Knowing how to deal with that resistance is the heart of
implementing an organizational change program. Organizational development is a change process
through which employees formulate the change that's required and implement it, often with the
assistance of trained consultants.
79) Which of the following is most likely NOT measured when evaluating a training program?
A) what trainees learned from the program
B) participants' reactions to the program
C) overall organizational productivity
D) changes in on-the-job behavior Answer: C
Chapter: 8

80) Which of the following terms refers to a formal method for testing the effectiveness of a
training program?
A) electronic performance monitoring

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B) factor comparison method

C) controlled experimentation
D) performance management Answer: C

Human Resource Management, 15e (Dessler)

Chapter 7 Performance Management and Appraisal

1) Which of the following terms refers to the process of evaluating an employee's current
and/or past performance relative to his or her performance standards?
A) employee selection
B) performance appraisal
C) employee orientation
D) organizational development

2) The primary purpose of providing employees with feedback during a performance

appraisal is to motivate employees to .
A) apply for managerial positions
B) remove any performance deficiencies
C) revise their performance standards
D) enroll in work-related training programs Answer: B

3) Which of the following is NOT one of the recommended guidelines for setting effective
employee goals?
A) creating specific goals
B) assigning measurable goals
C) administering consequences for failure to meet goals
D) encouraging employees to participate in setting goals Answer: C

4) SMART goals are best described as .

A) specific, measurable, attainable, relevant, and timely
B) straightforward, meaningful, accessible, real, and tested
C) strategic, moderate, achievable, relevant, and timely
D) supportive, meaningful, attainable, real, and timely Answer: A

5) All of the following are reasons for appraising an employee's performance EXCEPT
.
A) correcting any work-related deficiencies
B) creating an organizational strategy map
C) determining appropriate salary and bonuses
D) making decisions about promotions Answer: B

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6) In most organizations, who is primarily responsible for appraising an employee's

performance?
A) employee's direct supervisor
B) company appraiser
C) human resources manager
D) employee's subordinates Answer: A

7) Which of the following is most likely NOT a role played by the HR department in the
performance appraisal process?
A) conducting appraisals of employees
B) monitoring the appraisal system's effectiveness
C) providing performance appraisal training to supervisors
D) ensuring the appraisal system's compliance with EEO laws Answer: A

8) What is the first step of any performance appraisal?

A) giving feedback
B) setting work standards
C) making plans to provide training
D) assessing the employee's performance Answer: B

9) means making sure that the manager and the subordinate agree on the
subordinate's job standards and the appraisal method to be used.
A) SMART goals
B) Organizational development
C) Defining the job
D) Forced distribution Answer: C

10) Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
A) customers
B) rating committees
C) top management
D) immediate supervisor Answer: D

11) Employee performance appraisals are conducted by all of the following EXCEPT .
A) peers
B) competitors
C) subordinates
D) rating committees Answer: B

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12) Peer appraisals have been shown to result in a .

A) reduction of social loafing
B) reduction of group cohesion
C) decrease in task motivation
D) decrease in group satisfaction Answer: A

13) In most firms, a rating committee used for performance appraisals consists of
members.
A) 2-3
B) 4-5
C) 6-8
D) 9-10
Answer: B

14) What usually occurs when employees rate themselves for performance appraisals?
A) Ratings are reliable but invalid.
B) Ratings are subject to halo effects.
C) Ratings are higher than when provided by supervisors.
D) Ratings are about the same as when determined by peers. Answer: C

15) Which of the following terms refers to the process of allowing subordinates to rate their
supervisor's performance anonymously?
A) supplemental evaluation
B) upward feedback
C) paired evaluation
D) peer evaluation Answer: B

16) According to research, what is the typical result of upward feedback?

A) Firms are protected against biased appraisals.
B) Managers get defensive.
C) Managers improve their performance.
D) Managers seek to find out who gave them bad ratings. Answer: C
17) Which of the following terms refers to a performance appraisal based on surveys from
peers, supervisors, subordinates, and customers?
A) 360-degree feedback
B) team appraisals
C) upward feedback
D) rating committee Answer: A

18) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance

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appraisals from their supervisors that combine critical incidents with a graphic rating scale.
However, the firm's CEO advocates shifting from performance appraisals to performance
management in an attempt to make Oshman more competitive and performance driven.

Which of the following, if true, best supports the argument to replace Oshman's traditional appraisal
methods with the performance management approach?
A) Oshman's competitors in the small appliance industry monitor the performance of their
employees through electronic performance monitoring systems.
B) Oshman executives want to align the firm's strategic plan with individual employee goals
and development needs.
C) Oshman has experienced problems associated with central tendency and bias, and the firm
wants to ensure that appraisals are legally sound.
D) Oshman uses management by objectives as a primary appraisal method and requires
supervisors to develop SMART goals.
Answer: B
19) A performance appraisal is based on the assumption that an employee understood what his
or her performance standards were prior to the appraisal.
Chapter: 9

20) Supervisors should provide employees with feedback, development, and incentives
necessary to help employees eliminate performance deficiencies or to continue to perform well.

21) The third step of the performance appraisal process is to assess the employee's actual
performance relative to work standards.
22) In order to ensure that performance goals are challenging and relevant, Matthew, a
marketing manager, should independently set goals for his subordinates because participatively set
goals usually produce lower job performance.

23) Formal performance appraisals have been eliminated by almost all major firms and replaced
by daily assessments by peers in addition to extensive training opportunities.

24) The HR department monitors the performance appraisal system, but it is typically not
involved in rating employees.
25) In order to ensure that performance appraisals are effective, Felicia, a line supervisor, should
make sure to schedule a feedback session to address each subordinate's performance, progress, and
future development plans.

26) Peer appraisals have been shown to have a negative effect on task motivation, cohesion, and
job satisfaction, so most organizations no longer use them.

27) Studies suggest that managers who receive upward feedback from identified subordinates

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view the upward appraisal process more negatively than do managers who receive anonymous
upward feedback.
28) Three hundred and sixty-degree feedback is generally used for development purposes rather
than for pay increases.

29) As a manager, how can you set effective performance appraisal standards for your
employees? Explain your answer in a brief essay.
Answer: Managers can set effective goals by following certain guidelines.
• Set SMART goals. These are specific, measurable, attainable, relevant, and timely.
• Assign specific goals. Employees who have specific goals usually perform better than those
who do not.
• Assign measurable goals. Always try to express the goal in terms of numbers, and include
target dates or deadlines.
• Assign challenging but doable goals. Make them challenging, but not so difficult that they
appear impossible or unrealistic.
Chapter: 9

30) What are the essential steps of the performance appraisal process?
Answer: The performance appraisal process itself contains three steps: 1) setting work standards, 2)
assessing the employee's actual performance relative to those standards, and 3) providing feedback.
31) Which of the following is the easiest and most popular technique for appraising employee
performance?
A) alternation ranking
B) graphic rating scale
C) forced distribution
D) constant sum rating scale Answer: B

32) Which performance appraisal technique lists traits and a range of performance values for
each trait?
A) behaviorally anchored rating scale
B) graphic rating scale
C) forced distribution
D) critical incident Answer: B
33) Wilson Consulting is a management consulting firm with seventy employees. As associate
vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of
the twelve employees under her direct supervision. Suzanne plans to use a graphic rating scale to
evaluate the performance of her subordinates.

Which of the following, if true, best supports the argument that a graphic rating scale is the most
appropriate performance appraisal tool for Suzanne to use?
A) The firm wants Suzanne to evaluate her subordinates on an ongoing basis and to keep a log

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of critical incidents.
B) Suzanne wants to ensure that the firm is protected from employee discrimination lawsuits,
so she has conducted a job analysis of each position.
C) Suzanne wants a quantitative rating of each employee based on competencies important to
the firm, such as problem-solving skills.
D) Employees in Suzanne's department participated in developing their own performance
standards when they were first hired by the firm.
Answer: C

34) All of the following are usually measured by a graphic rating scale EXCEPT .
A) generic dimensions of performance
B) performance of co-workers
C) achievement of objectives
D) job-related competencies Answer: B
35) Which performance appraisal tool requires supervisors to categorize employees from best to
worst on various traits?
A) graphic rating scale
B) critical incident method
C) alternation ranking method
D) electronic performance monitoring Answer: C

36) The most popular method for ranking employees is the method.
A) graphic ranking scale
B) alternation ranking
C) paired comparison
D) forced distribution Answer: B
37) Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of
employees for each trait being evaluated. Then, she indicates the better employee of each pair with
a positive symbol on the chart. Finally, she totals the number of positive symbols for each
employee. Which method of performance appraisal has Kendra most likely used?
A) graphic ranking scale
B) alternation ranking
C) paired comparison
D) forced distribution Answer: C

38) Which performance appraisal tool is being used when a supervisor places predetermined
percentages of appraisees into various performance categories?
A) behaviorally anchored rating scale
B) graphic ranking scale
C) alternation ranking
D) forced distribution Answer: D

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Chapter: 9
39) John, the supervisor of the manufacturing department at a computer firm, is in the process of
evaluating his staff's performance. He has determined that 15% of the group will be identified as
high performers, 20% as above average performers, 30% as average performers, 20% as below
average performers, and 15% as poor performers. Which performance appraisal tool has John
chosen to use?
A) behaviorally anchored rating scale
B) forced distribution
C) alternation ranking
D) paired comparison Answer: B
Chapter: 9

40) Which of the following measurement methods is similar to grading on a curve?

A) forced distribution
B) graphic rating scale
C) constant sums rating
D) behaviorally anchored rating scale Answer: A
Chapter: 9
41) Which of the following is one of the primary complaints regarding the use of the forced
distribution method for performance appraisals?
A) difficult to implement
B) harm to employee morale
C) high costs of administration
D) time consuming to administer Answer: B

42) Which performance appraisal tools require a supervisor to maintain a log of positive and
negative examples of a subordinate's work-related behavior?
A) alternation ranking
B) paired comparison
C) critical incident
D) graphic rating Answer: C
43) Which of the following is a downside of the critical incident method of compiling incidents?
A) doesn't provide examples of excellent work performance
B) doesn't produce relative ratings for pay raise purposes
C) doesn't make the supervisor think about the subordinate's appraisal all year
D) doesn't compile examples of ineffective work performance Answer: B

44) Wilson Consulting is a management consulting firm with 70 employees. As associate vice
president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the
12 employees under her direct supervision. Suzanne plans to use the critical incident method to
evaluate the performance of her subordinates.

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Which of the following, if true, most likely undermines the argument that the critical incident
method is the most appropriate performance appraisal tool for Suzanne to use?
A) Employee performance standards are closely aligned with Wilson Consulting's long-term
strategic plans.
B) Suzanne will be conducting performance appraisals in conjunction with the HR manager to
ensure EEO compliance.
C) Wilson Consulting will be allowing employees to rate themselves as part of its
organizational development strategy.
D) Due to economic difficulties, the firm will be laying off the two lowest performing
employees in Suzanne's department.
Answer: D
45) Which appraisal method combines the benefits of narrative critical incidents and quantified
scales by assigning scale points with specific examples of good or poor performance?
A) behaviorally anchored rating scale
B) constant sums rating scale
C) alternation ranking
D) forced distribution Answer: A

46) Which of the following best describes a behaviorally anchored rating scale?
A) chart of paired subordinates ranked in order of performance
B) combination of narrative critical incidents and quantified performance scales
C) diary of positive and negative examples of a subordinate's work performance
D) list of subordinates from highest to lowest based on specific performance traits Answer: B
47) The first step in developing a behaviorally anchored rating scale is to .
A) develop performance dimensions
B) write critical incidents
C) reallocate incidents
D) scale incidents Answer: B

48) Stacey is using a behaviorally anchored rating scale as a performance appraisal tool. She has
already asked employees and supervisors to describe critical incidents of effective and ineffective
job performance. What should Stacey most likely do next?
A) create a final appraisal instrument
B) develop performance dimensions
C) reallocate the incidents
D) rate the incidents Answer: B
49) Wilson Consulting is a management consulting firm with 70 employees. As associate vice
president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the
12 employees under her direct supervision. Suzanne plans to use the behaviorally anchored rating
scale (BARS) to evaluate the performance of her subordinates.

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Which of the following, if true, supports the argument that BARS is the most appropriate
performance appraisal tool for Suzanne to use?
A) Suzanne wants to provide her subordinates with specific examples of their good and poor
job performance during the appraisal interview.
B) Suzanne encourages her subordinates to review and make comments about their appraisal
during a formal appeals process.
C) Wilson Consulting recently installed an electronic performance monitoring system to help
supervisors conduct appraisals.
D) Suzanne provides her subordinates with upward feedback as a way to illustrate the ratings
she assigns to each employee.
Answer: A
Chapter: 9

50) What is the primary goal of using mixed standard scales?

A) improving validity
B) reducing rating errors
C) clarifying performance standards
D) illustrating feedback for subordinates Answer: B
51) Which of the following terms refers to setting specific measurable goals with each employee
and then periodically reviewing the progress made?
A) behaviorally anchored rating scale
B) management by objective
C) mixed standard scales
D) forced distribution Answer: B
Chapter: 9

52) All of the following are benefits of using computerized or Web-based performance appraisal
systems EXCEPT .
A) merging examples with performance ratings
B) helping managers maintain computerized notes
C) combining different performance appraisal tools
D) enabling managers to monitor employees' computers Answer: D
53) Which of the following enables supervisors to oversee the amount of computerized data an
employee is processing each day?
A) computerized performance appraisal system
B) online management assessment center
C) digitized high-performance work center
D) electronic performance monitoring system Answer: D

54) Nick supervises a team of data entry specialists. Lately, productivity has been down, and

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Nick believes his subordinates are not working as efficiently as possible. Which of the following
tools would provide Nick with daily information about each employee's rate, accuracy, and time
spent entering data?
A) digital dashboard device
B) electronic performance monitoring system
C) Web-based management oversight device
D) electronic performance support system Answer: B
55) Which term refers to ranking of employees from best to worst on a trait or traits, choosing
highest than lowest until all are ranked?
A) performance management
B) paired comparison
C) alternation ranking
D) direction sharing Answer: C

56) The forced distribution method is the simplest and most popular technique for appraising
performance.

57) In the paired comparison method, the manager places predetermined percentages of ratees
into performance categories.

58) Paired comparison is a rating approach that involves keeping a record of uncommonly good
or undesirable examples of an employee's work-related behavior and reviewing it with the
employee at predetermined times.

59) The advantages of using BARS as a performance appraisal tool are the method's accuracy,
clear standards, and consistency.

60) Management by objectives requires a manager to set specific measurable, organizationally

relevant goals with each employee and then periodically discuss the employee's progress toward
these goals.
Chapter: 9
61) Sam supervises a team of data entry clerks at Geico. The firm's electronic performance
monitoring system enables Sam to electronically monitor the amount of computerized data an
employee processes each day.

62) The alternation ranking method of performance appraisals can be problematic and unfair if
all employees have excellent job performance.

63) Ongoing performance monitoring is an element of performance management that involves

the use of computer-based systems that measure an employee's progress and send out reports

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regarding an employee's performance.

64) A talent management philosophy involves segmenting employees based on their value to the
firm's success and providing those employees with special coaching, feedback, and development
opportunities.

Chapter: 9

65) In a brief essay, describe the forced distribution method. What are the advantages and
disadvantages of the forced distribution method?
Answer: The forced distribution method is similar to grading on a curve. With this method, you
place predetermined percentages of ratees into several performance categories. The proportions in
each category need not be symmetrical; GE used top 20%, middle 70%, and bottom 10% for
managers. The advantage of the method is that you end up with a predetermined number of people
in each group. The disadvantage is that employees' appraisal results depend on your choice of cutoff
points.
66) What is a behaviorally anchored rating scale (BARS)? How would a manager develop a
BARS?
Answer: A behaviorally anchored rating scale is a rating scale that is anchored with specific
behavioral examples of good or poor performance. Because of the anchors, which are based on the
dimensions of performance illustrated by critical incidents, a BARS combines the benefits of
narratives, critical incident, and quantified scales. There are five steps required for developing a
BARS. Each step is explained below.
• Step 1: Write critical incidents. In this step, people who know the job are asked to describe
specific illustrations of effective and ineffective performance.
• Step 2: Develop performance dimensions. The people who know the job are then asked to
cluster the incidents into a smaller set of performance dimensions and to define each dimension
with a name.
• Step 3: Reallocate incidents. Another group of people, who also know the job, should
reallocate the original critical incidents. They will receive the cluster definitions and the list of
critical incidents. They will then reassign each incident into the cluster they think it fits best. If the
assignments made by the first group and second group match well, then that critical incident is
retained.
• Step 4: Scale the incidents. The second group then rates the behavior described by the
incident as to how effectively or ineffectively it represents performance on the dimension.
• Step 5: Develop a final instrument. Six or seven of the incidents are the dimension's
behavioral anchors.

67) Graphic rating scales are subject to all of the following problems EXCEPT .
A) unclear standards
B) halo effects
C) complexity

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D) leniency Answer: C
68) Which of the following terms refers to an appraisal that is too open to interpretation?
A) unclear standards
B) halo effects
C) leniency
D) biased Answer: A
Chapter: 9

69) Which of the following is the best way for a supervisor to correct a performance appraisal
problem caused by unclear standards?
A) focusing on performance instead of personality traits
B) using graphic rating scales to rank employees
C) using descriptive phrases to illustrate traits
D) allowing employees to rate themselves first Answer: C
70) Which of the following is a performance appraisal problem that occurs when a supervisor's
rating of a subordinate on one trait biases the rating of that person on other traits?
A) recency effect
B) halo effect
C) central tendency
D) stereotyping Answer: B

71) Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly.
Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work."
Which of the following problems has most likely affected Jason's performance appraisal?
A) central tendency
B) leniency
C) halo effect
D) recency effect Answer: C
Recency effect means focusing on the most recent behavior of an employee rather than his or her
performance over a year.
72) A supervisor who frequently rates all employees as average on performance appraisals most
likely has a problem known as .
A) halo effect
B) stereotyping
C) central tendency
D) leniency Answer: C

73) The best way to reduce the problem of central tendency in performance appraisals is to
.
A) rank employees
B) use graphic rating scales

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C) limit the number of appraisals

D) appraise personal characteristics Answer: A

74) Which performance appraisal problem is associated with supervisors giving all of their
subordinates consistently high ratings?
A) central tendency
B) leniency
C) strictness
D) halo effect Answer: B
75) The problem occurs when supervisors tend to rate all their subordinates consistently
low.
A) central tendency
B) leniency
C) strictness
D) halo effect Answer: C

76) Which of the follow is the best method for reducing the problems of leniency or strictness in
performance appraisals?
A) keep critical incident logs
B) require multiple appraisals
C) impose a performance distribution
D) reconsider the timing of the appraisal Answer: C
77) Which of the following has most likely occurred when a supervisor conducting a
performance appraisal is influenced by a subordinate's individual differences such as age, sex, and
race?
A) bias
B) halo affect
C) central tendency
D) unclear standards Answer: A

78) Which of the following is LEAST likely to cause a supervisor's performance appraisal of a
subordinate to be biased?
A) purpose of the appraisal
B) location and time of the appraisal
C) personal characteristics of the subordinate
D) relationship between supervisor and subordinate Answer: B
79) All of the following guidelines will most likely improve the effectiveness of a performance
appraisal EXCEPT .
A) maintaining a diary of employees' performance during the year
B) using a graphic rating scale to ensure fair and consistent ratings
C) knowing the advantages and disadvantages of different appraisal tools

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D) developing a plan to assist employees with performance improvement Answer: B

80) Stephanie manages the accounting department at an advertising agency. She needs to
conduct performance appraisals for the eight employees in her department. Stephanie wants a
performance appraisal tool that is highly accurate, ranks employees, and uses critical incidents to
help explain ratings to appraisees. Which performance appraisal tool is best suited for Stephanie?
A) graphic rating scale
B) alternation ranking method
C) critical incident method
D) behaviorally anchored rating scale Answer: D
81) Which of the following is the primary advantage of using graphic rating scales as
performance appraisal tools?
A) eliminates central tendency errors
B) offers extremely high rate of accuracy
C) provides quantitative rating for each employee
D) links with mutually agreed upon performance objectives Answer: C

82) All of the following are considered best practices for administering fair performance
appraisals EXCEPT .
A) explaining how subordinates can improve their performance
B) basing the appraisal on observable job behaviors
C) using subjective performance data for appraisals
D) training supervisors how to conduct appraisals Answer: C
83) Which of the following would most likely result in a legally questionable appraisal process?
A) basing appraisals on subjective supervisory observations
B) administering and scoring appraisals in a standardized fashion
C) using job performance dimensions that are too clearly defined
D) assigning specific trait names when using graphic rating scales Answer: A
Performance appraisals are more legally sound if based on clearly specified job performance
dimensions.

84) Unclear standards on a performance appraisal tool will most likely lead to unfair appraisals
because performance traits are too open for interpretation.

85) Central tendency is a problem that occurs when a supervisor's rating of a subordinate on one
trait biases the rating of that person on other traits.
86) In order to ensure that a performance appraisal is legally defensible, a supervisor should use
only one performance appraisal tool.

87) What are the guidelines that supervisors should follow to hold effective appraisals and
minimize problems like bias and halo effects? How can rating committees improve the fairness of

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the appraisal process?

Answer: The first technique is to learn and understand the potential problem and possible solutions.
Simply understanding the potential for the problem can help to avoid it. Second, using the right
appraisal tool for each situation is important. Third, supervisors can keep a diary of critical
incidents to file and use for later reference for subordinate's appraisals. This technique helps to
ensure that both negative and positive incidents are recorded. Fourth, make sure that the primary
goal of the appraisal is to improve unsatisfactory performance or reinforce exemplary performance.
Finally, the appraisal should be fair. Many employers use rating committees. These committees
usually contain the employee's immediate supervisor and two or three other supervisors. Using
multiple raters makes sense. Although there may be discrepancies among ratings by individual
supervisors, the composite ratings tend to be more reliable, fair, and valid. Using several raters can
also help cancel out problems like bias and halo effects.
88) In a brief essay, discuss how a supervisor can develop and conduct a performance appraisal
that is legally defensible.
Answer: Supervisors should conduct a job analysis to establish criteria and standards for successful
performance and incorporate these criteria and standards into a rating system. It is important to
communicate performance standards to employees and supervisors in writing and avoid abstract
trait names when using graphic rating scales. Steps to ensure the appraisal are legally defensible are
these:
Base the performance appraisal criteria on a job analysis. At the start of the period, communicate
performance standards to employee in writing. Using a single overall rating of performance is not
acceptable to the courts. Include an employee appeals process. One appraiser should never have
absolute authority to determine a person's actions. Document all information bearing on a personnel
decision in writing. Also train supervisors. If formal rater training is not possible, at least prove
rates with written instruction on how to use the rating scale.

89) Which of the following best describes the purpose of an appraisal interview?
A) training supervisors in the rating process
B) identifying potential interpersonal problems
C) making plans to correct employee weaknesses
D) discussing and scheduling training programs Answer: C
90) You are conducting an appraisal interview with an employee whose performance is
satisfactory but for whom promotion is not possible. Which incentive listed below would be the
LEAST effective option for maintaining satisfactory performance in this situation?
A) time off
B) small bonus
C) recognition
D) professional development Answer: D

91) When conducting an appraisal interview, supervisors should do all of the following
EXCEPT

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.
A) ask open-ended questions
B) give specific examples of poor performance
C) write up an action plan with goals and dates
D) compare the person's performance to that of other employees Answer: D
92) When a supervisor must criticize a subordinate in an appraisal interview, it is most
important for the supervisor to .
A) limit negative feedback to once every year
B) provide specific examples of critical incidents
C) acknowledge the supervisor's personal biases in the situation
D) hold the meeting with other people who can document the situation Answer: B

93) When an employee's performance is so poor that a written warning is required, the warning
should .
A) identify the standards by which the employee is judged
B) provide examples of employees who met the standards
C) provide examples of times when the employee met the standards
D) be written by a labor law attorney in accordance with federal guidelines Answer: A

94) During an exit interview, a supervisor and a subordinate review the appraisal and make
plans to correct deficiencies and reinforce strengths.

95) Tyler, an accounting manager at Firestone, is preparing for an appraisal interview with an
employee whose performance is unsatisfactory but correctable. Tyler's primary objective during the
interview should be to encourage the employee with positive reinforcements like job enlargement
and compliments.

96) While formal written warnings are provided too late to salvage an employee's performance
and position at the company, they are useful in court proceedings.
97) Why is it important for a manager to appraise a subordinate's performance? How can a
manager handle a subordinate who is defensive when told that his or her performance is poor?
Answer: There are four reasons for conducting performance appraisals. First, most employers base
pay, promotion, retention decision on the employee's appraisal. Second, appraisals play a central
role in the employer's performance management process. Third, it lets the manager and subordinate
develop a plan for correcting any deficiencies that might exist and to reinforce and support things
that are done well. Fourth, appraisals can serve a useful career planning purpose by providing the
opportunity to review the employee's career plans in light of his or her strengths and weaknesses.
When a supervisor tells someone his or her performance is poor, the first reaction is often denial.
Denial is a defense mechanism. Understanding and dealing with defensiveness is an important
appraisal skill. A supervisor should recognize that defensive behavior is normal and never attack a
person's defenses. A supervisor should postpone action because given sufficient time, a more
rational reaction may take over. A supervisor should not try to be a psychologist. Offering

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understanding is one thing; trying to deal with psychological problems is another.

98) Describe the four basic types of appraisal interviews.

Answer: The first type of appraisal interview is the satisfactory-promotable appraisal interview.
This occurs when the person's performance is satisfactory and there is a promotion ahead. The
objective is to discuss the person's career plans and to develop a specific action plan for the
educational and professional development the person needs to move to the next job.

The second type of interview is the satisfactory-not promotable appraisal interview. This is for
employees whose performance is satisfactory but for whom promotion is not possible. The
objective is to maintain satisfactory performance. The best option is to find incentives that are
important to the person.

The third type of interview is the unsatisfactory but correctable interview. In this situation, the
objective is to develop an action plan for correcting the unsatisfactory performance.

The final type of interview is the unsatisfactory-uncorrectable interview. In this situation, the
interview may even be skipped. The person's poor performance is tolerated or the person is
dismissed.
99) The continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning their performance with the organization's goals is known as
.
A) strategic management
B) performance analysis
C) performance appraisal
D) performance management Answer: D

100) Which component of performance management refers to communicating a firm's higher-

level goals throughout the organization and then translating them into departmental and individual
goals?
A) goal alignment
B) performance monitoring
C) direction sharing
D) developmental support Answer: C
101) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance
appraisals from their supervisors that combine critical incidents with a graphic rating scale.
However, the firm's CEO advocates shifting from performance appraisals to performance
management in an attempt to make Oshman more competitive and performance driven.

All of the following questions are relevant to Oshman's decision to replace its traditional appraisal

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methods with the performance management approach EXCEPT:

A) What technology is available to help managers gain immediate access to employee
performance data?
B) How would work procedures need to be modified to provide more frequent feedback to
employees?
C) How would the firm's mission and vision translate into departmental, team, and individual
goals?
D) What procedures are already in place to effectively identify and measure critical incidents?
Answer: D

102) A supervisor working for a firm that uses performance management should most likely
expect to .
A) conduct annual performance appraisals
B) compare team goals to industry standards
C) re-evaluate how employees accomplish tasks
D) use paper forms to handle performance appraisals Answer: C
103) Which of the following is NOT one of performance management's six basic elements?
A) habit creation
B) goal alignment
C) ongoing feedback
D) direction sharing Answer: A
Chapter: 9

104) Performance appraisals are a link between corporate strategy, departmental goals, employee
goals and employee performance in the overall performance management process.

105) In a brief essay, discuss the components necessary for an effective performance management
process.
Answer: The basic building blocks of performance management include the following:
• Direction sharing means communicating the company's goal through higher level goals
throughout the organization and translating these into doable departmental goals.
• Goal alignment means having a process in place that allows any manager to see the link
between an employee's goals and those of the department and organization.
• Ongoing performance monitoring means using computer-based systems to measure and
report on employee progress toward meeting performance goals.
• Ongoing feedback includes face-to-face and computer-based feedback regarding progress
toward goals.
• Coaching and developmental support should be an integral part of the feedback process.
• Rewards, recognition, and compensation provide the consequences necessary to keep
employee performance on target.

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Human Resource Management, 15e (Dessler)

Chapter 8 Establishing Strategic Pay Plans

1) Which of the following terms refers to all forms of pay or rewards going to employees and
arising from their employment?
A) salary
B) employee benefits
C) wage reimbursement
D) employee compensation
Answer: D

2) Which of the following is NOT a type of direct financial payment?

A) wages
B) insurance
C) incentives
D) commissions
Answer: B

3) Which of the following terms refers to pay in the form of financial benefits, such
as insurance?
A) direct financial payments
B) out-of-pocket expenses
C) indirect financial payments
D) sales commissions
Answer: C

4) John is a sales representative in a jewelry store. He typically works 40 hours per week and his
pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which
of the following terms best describes John's situation?
A) pay for performance
B) indirect financial compensation
C) time-based compensation
D) piecework pay
Answer: A

5) Which of the following factors has the LEAST effect on the design of an organization's pay
plan?
A) legal
B) union
C) company vision
D) company policy
Answer: C

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Chapter: 11

6) Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers
and mechanics employed by contractors working for the federal government?
A) Walsh-Healey Public Contract
B) Fair Labor Standards Act
C) Civil Rights Act
D) Davis-Bacon Act
Answer: D
Chapter: 11

7) Which of the following sets basic labor standards for employees working on any government
contract that amounts to more than $10,000?
A) Davis-Bacon Act
B) Walsh-Healey Public Contract
C) Fair Wages Act
D) Fair Labor Standards Act
Answer: B

8) Which compensation-related law contains provisions for minimum wage, maximum hours,
overtime pay, equal pay, record-keeping, and child labor?
A) Davis-Bacon Act
B) Fair Wages Act
C) Fair Labor Standards Act
D) Walsh-Healey Public Contract
Answer: C

9) Which of the following issues is NOT addressed by the Fair Labor Standards Act?
A) record-keeping
B) overtime pay
C) child labor
D) termination
Answer: D

10) Which law makes it illegal to discriminate against any individual with respect to
compensation because of race, color, religion, sex, or national origin?
A) Fair Labor Standards Act
B) Title VII of the Civil Rights Act
C) Equal Pay Act
D) Taft-Hartley Act
Answer: B

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11) According to the Fair Labor Standards Act, what rate of normal pay would a covered
employee receive for working more than 40 hours in a workweek?
A) 50%
B) 100%
C) 150%
D) 200%
Answer: C

12) Jill works as a cashier at a grocery store. She earns $10 an hour (or $400 for a 40-hour
week). Last week, she worked 46 hours. What is the minimum amount that Jill earned last week?
A) $460
B) $490
C) $520
D) $550
Answer: B

13) Joseph worked 6 hours of overtime this week but has decided to take time off instead of
overtime pay. How many hours will Joseph receive in time off from work?
A) 3 hours
B) 6 hours
C) 9 hours
D) 18 hours
Answer: C

14) Which of the following is true for employers who use independent contractors?
A) Fair Labor Standards Act overtime requirements do not apply.
B) Social Security taxes are higher than for regular employees.
C) Federal income taxes are charged at a reduced rate.
D) Payroll taxes are paid by the employer.
Answer: A

15) In most cases, which of the following occupations is NOT exempt from the overtime
provisions of the Fair Labor Standards Act?
A) physicians
B) engineers
C) paralegals
D) teachers
Answer: C

16) Which of the following jobs is most likely categorized as nonexempt from the overtime pay
provisions of the Fair Labor Standards Act?

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A) taxicab driver
B) personnel director
C) newspaper writer
D) computer systems analyst
Answer: C

17) Anita, a manager at a department store, needs to determine whether one of her employees is
exempt or nonexempt under the Fair Labor Standards Act. Which of the following would be the
best resource for Anita?
A) organizational chart
B) performance appraisal
C) business plan
D) job description
Answer: D
Chapter: 11

18) Which of the following states that employees of one sex may not be paid wages at a rate
lower than that paid to employees of the opposite sex for doing roughly equivalent work?
A) Americans with Disabilities Act
B) Title VII of the Civil Rights Act
C) Social Security Act
D) Equal Pay Act
Answer: D

19) Which act regulates vesting rights and portability rights?

A) Fair Labor Standards Act
B) Title VII of the Civil Rights Act
C) Employer Retirement Income Security Act
D) Equal Pay Act of 1963
Answer: C

20) Which of the following terms refers to the ownership employees build up in their pension
plans should their employment with a firm end prior to retirement?
A) portability
B) equity
C) vesting
D) shares
Answer: C

21) Which of the following laws has the LEAST amount of influence on compensation
decisions?

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A) Americans with Disabilities Act

B) Labor Management Relations Act
C) Family and Medical Leave Act
D) Age Discrimination in Employment Act
Answer: B

22) Bonnie, a data analyst, needs to take time off from work to care for her elderly mother.
According to the Family and Medical Leave Act, what is the maximum number of weeks of
unpaid, job-protected leave that Bonnie may take?
A) 4
B) 6
C) 12
D) 16
Answer: C

23) Which of the following gives employees the right to organize, bargain collectively, and
engage in concerted activities for the purpose of collective bargaining?
A) Equal Pay Act
B) Civil Rights Act
C) Fair Labor Standards Act
D) National Labor Relations Act
Answer: D

24) What has historically been the key issue in collective bargaining?
A) wage rates
B) income security
C) health care benefits
D) cost-of-living adjustments
Answer: A

25) Which of the following issues would LEAST likely be negotiated by unions?
A) income security
B) time off with pay
C) health care benefits
D) unpaid medical leave
Answer: D

26) Which of the following terms refers to a compensation plan that advances a firm's strategic
goals?
A) strategic management
B) performance pay plan

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C) aligned reward strategy

D) workers' compensation package
Answer: C
Chapter: 11

27) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the
past few years, the company's market share has dropped significantly, and employee turnover has
increased. Upper management is considering the implementation of a new compensation policy in
its efforts to turn the company around. Historically, the company has paid all employees similarly
with some variation for seniority but no distinction between high and low performers.

Which of the following questions is LEAST relevant to Homelife's decision to develop an

aligned reward strategy?
A) What compensation programs should Homelife use to reinforce necessary employee
behaviors?
B) How well does Homelife's current compensation program match the company's strategic
aims?
C) What compensation programs should Homelife use to reinforce desired employee
behaviors?
D) What are the results of Homelife employee salary surveys in regards to wage satisfaction?
Answer: D

28) Which of the following is the LEAST likely way that an employer would address a cost-of-
living differential?
A) paying a nonrecurring amount spread over one to three years
B) paying a nonrecurring, lump sum amount
C) raising an employee's base salary
D) raising commission percentages
Answer: D

29) What theory of motivation states that people are strongly motivated to maintain a balance
between what they perceive as their contributions and their rewards?
A) Two-factor theory
B) Equity theory
C) Learned needs theory
D) Expectancy theory
Answer: B

30) Which of the following is NOT one of the forms of equity related to compensation issues?
A) group
B) external
C) individual

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D) procedural
Answer: A

31) Which form of equity refers to how a job's pay rate in one company compares to the job's
pay rate in other companies?
A) distributive
B) internal
C) external
D) procedural
Answer: C

32) Jason is an information systems technician in a town in North Carolina with a population of
100,000. He receives an annual salary of $35,000. He recently found out that a nearby town with
a similar population pays people in the same position $40,000 annually. With which form of
equity is Jason most concerned?
A) distributive
B) procedural
C) internal
D) external
Answer: D

33) Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs
within the same company?
A) external
B) internal
C) distributive
D) individual
Answer: B

34) Trevor, a sales manager at IBM, recently learned that an IBM human resources manager with
comparable responsibilities and spans of control earns a higher salary than Trevor. Which form of
equity is of most concern to Trevor?
A) external
B) internal
C) distributive
D) individual
Answer: B

35) Which form of equity refers to the fairness of an individual's pay as compared with what his
or her co-workers are earning for the same or very similar jobs within the company, based on
each individual's performance?
A) internal

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B) distributive
C) individual
D) procedural
Answer: C

36) Audrey is a lawyer in a mid-size firm in Chicago. She recently learned that another lawyer
who joined the firm at the same time earns a lower salary than she does. Which form of equity is
most relevant to Audrey's situation?
A) internal
B) distributive
C) individual
D) procedural
Answer: C

37) Which form of equity refers to the perceived fairness of the processes used to make decisions
regarding the allocation of pay?
A) internal
B) distributive
C) individual
D) procedural
Answer: D

38) External equity refers to .

A) how a job's pay rate in one company compares to the job's pay rate in other companies
B) the fairness of an individual's pay as compared to a co-worker's pay for the same job
C) the perceived fairness of the processes and procedures used to make decisions about
compensation
D) the use of salary surveys and job evaluation comparisons to monitor pay levels within an
industry
Answer: A

39) Which of the following best defines internal equity?

A) how a job's pay rate in one company compares to the job's pay rate in other companies
B) how fair the job's pay rate is, when compared to other jobs within the same company
C) the fairness of an individual's pay as compared to a co-worker's pay for the same job
D) the perceived fairness of the processes and procedures used to make compensation decisions
Answer: B

40) Which of the following is used to maintain internal equity?

A) job analysis comparisons
B) organizational charts
C) incentive pay

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D) salary surveys
Answer: A

41) What type of equity is a manager most likely trying to maintain through the use of
performance appraisals and incentive pay?
A) internal
B) external
C) individual
D) procedural
Answer: C

42) Beth, a small business owner, wants to ensure external equity when establishing pay rates.
Beth should most likely .
A) use wage curves to price each pay grade
B) compare performance appraisals
C) conduct a salary survey
D) check online pay sites
Answer: C

43) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the
past few years, the company's market share has dropped significantly, and employee turnover has
increased. Upper management is considering the implementation of a new compensation policy
in its efforts to turn the company around. Historically, the company has paid all employees
similarly with some variation for seniority but no distinction between high and low performers.

Which of the following, if true, best supports the argument that Homelife executives should
primarily address internal equity issues when developing a new compensation plan?
A) Homelife employees receive annual performance appraisals at which time they set career
goals.
B) Salary surveys indicate dissatisfaction among the Homelife managers in different
departments.
C) Online pay sites show the pay range for sales associates at both Homelife and its
competitors.
D) Homelife pays its sales managers commissions in addition to base salaries and health
benefits.
Answer: B

44) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the
past few years, the company's market share has dropped significantly, and employee turnover has
increased. Upper management is considering the implementation of a new compensation policy in
its efforts to turn the company around. Historically, the company has paid all employees similarly
with some variation for seniority but no distinction between high and low performers.

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Which of the following, if true, best supports the argument that Homelife should distribute salary
surveys before establishing new pay rates?
A) Homelife executives want to identify benchmark jobs before determining the worth of other
jobs.
B) Homelife executives plan to use the compensable factors emphasized by the Equal Pay Act.
C) Computerized job evaluation systems will be used by Homelife to generate questionnaires.
D) A wage curve needs to be established by Homelife for the purpose of federal compliance.
Answer: A

45) Financial benefits like employer-paid insurance and vacations are not a part of employee
compensation.

46) Indirect payments that contribute to an employee's compensation include variable pay like
commissions and bonuses.

48) Performance-based pay is more popular than time-based pay among most employers in the
U.S.

49) According to the Davis-Bacon Act, when employees work more than 40 hours per week,
employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any
hours worked over 40 in a workweek.

50) Employers prefer to give time off in lieu of overtime pay because they only have to grant the
same number of hours off as the employee worked overtime, while overtime pay is calculated at
150% of normal pay.

51) Because the minimum wage is set by the Fair Labor Standards Act, there is no variation from
state to state in the minimum wage paid to hourly workers.

52) According to the FLSA, agricultural employees, live-in maids, and taxi drivers are always
eligible for overtime pay.

53) The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower
than that paid to employees of the opposite sex for doing roughly equivalent work.

54) Portability rights refer to an employee's ability to transfer his or her vested rights from one
organization to another.

55) While laws exist to protect against discrimination in compensation based on gender and age,
no law protects against such discrimination against persons with disabilities.

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56) The provision of the Family and Medical Leave Act that entitles employees to take up to
12 weeks of unpaid, job-protected leave for the birth of a child only applies to women.

60) External equity refers to how fair the job's pay rate is when compared to other jobs within the
same company.

61) What are the two primary ways to make direct financial payments to employees? How does
compensation for managers or professionals differ from compensation for clerical or production
workers at a firm?
Answer: There are two basic ways to make direct financial payments to employees: base them on
increments of time or on performance. Time-based pay is still the foundation of most employers'
pay plans. Blue-collar and clerical workers get hourly or daily wages, for instance, and others,
like managers or Web designers, tend to be salaried and paid by the week, month, or year. The
second direct payment option is to pay for performance. Piecework and sales commissions are
examples of performance-based compensation. Developing compensation plans for managers or
professionals is similar in many respects to developing plans for any employee. The basic aim is
the same: to attract and keep good employees. Managerial jobs tend to stress harder to quantify
factors like judgment and problem solving more than do production and clerical jobs. There is
also more emphasis on paying managers and professionals based on results—based on their
performance or on what they can do—rather than on the basis of static job demands like working
conditions. So, job evaluation, although still important, usually plays a secondary role to
non-salary issues like bonuses, incentives, market rates, and benefits.

62) What are the advantages for employers of claiming that someone doing work for them is an
independent contractor rather than an employee? What generally makes a worker classified as an
"independent contractor"?
Answer: There are many advantages to organizations. The Fair Labor Standards Act does not
apply to independent contractors. The employer does not have to pay unemployment
compensation, payroll taxes, Social Security taxes, or city, state, and federal income taxes.

In general, an individual is an independent contractor if the payer has the right to control or
direct only the result of the work and not what will be done and how it will be done. However,
there is no single rule or test. Instead, the courts will look at the total situation. The major
consideration is this: The more the employer controls what the worker does and how he or she
does it, the more likely it is that the courts will find the worker to be an employee, not an
independent contractor.

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63) What are your compensation options if you are an employer who needs to transfer an
employee from a low cost-of-living area to a high cost-of-living area?
Answer: Employers have different ways of handling cost-of-living differentials. One is to give
the transferred person a nonrecurring payment in a lump sum amount. Another is to pay a
differential for ongoing costs in addition to a one-time allocation. Others simply raise the
employee's base salary.

For international transfers, companies can go with a home-based or host-based salary plan.

With a home-based salary plan, an international transferee's base salary reflects his or her home
country's salary. The employer then adds allowances for cost-of-living differences–housing and
schooling costs, for instance. This is a reasonable approach for short-term assignments, and
avoids the problem of having to change the employee's base salary every time he or she moves.

In the host-based plan, the firm ties the international transferee's base salary to the host country's
salary structure. In other words, the manager from New York who is sent to France would have his
or her base salary changed to the prevailing base salary for that position in France, rather than
keep the New York base salary. The firm usually tacks on cost-of-living, housing, schooling, and
other allowances here as well.
Chapter: 11

64) Explain the equity theory of motivation. What are the four forms of equity?
Answer: Equity theory states that people are strongly motivated to maintain a balance between
what they perceive as their inputs or contributions and their rewards. If a person perceives an
inequity, a tension or drive will develop in the person's mind and the person will be motivated to
reduce or eliminate the tension and perceived inequity. The four forms are external, internal,
individual, and procedural. External equity refers to how a job's pay rate in one company
compares to the job's pay rate in other companies. Internal equity refers to how fair the job's pay
rate is when compared to other jobs within the same company. Individual equity refers to the
fairness of an individual's pay as compared with what his or her co-workers are earning for the
same or very similar jobs within the company, based on each individual's performance.
Procedural equity refers to the perceived fairness of the processes and procedures used to make
decisions regarding the allocation of pay.

65) Which of the following is used to anchor the employer's pay scale?
A) grades
B) job metric
C) benchmark job
D) human resource metric
Answer: C

66) Which of the following terms refers to a systematic comparison done in order to determine

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the worth of one job relative to another?

A) job analysis
B) job evaluation
C) job description
D) job classification
Answer: B

67) Central basic factors that establish how several jobs compare to one another and
that determine the pay for each job are called _.
A) compensable factors
B) job evaluation factors
C) ranking factors
D) analysis factors
Answer: A

68) In most cases, the majority of the members on a job evaluation committee are
.
A) managers
B) employees
C) HR specialists
D) union representatives
Answer: B

69) Which of the following is NOT one of the typical methods used by job
evaluation committees to determine the worth of a job?
A) ranking
B) point method
C) job classification
D) paired comparison
Answer: D

70) When using the job evaluation method of job classification, raters categorize jobs into groups
of similar jobs called .
A) classes
B) sections
C) grades
D) cohorts
Answer: A

71) Which of the following best describes the point method of job evaluation?
A) ranking each job relative to all other jobs based on pay grade

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B) categorizing jobs into grades and classes based on specific rules

C) deciding which jobs have a higher number of compensable factors
D) identifying and quantifying the compensable factors present in a job
Answer: D

72) Which job evaluation method is a quantitative technique involving the identification of
several compensable factors and the degree to which each of these factors is present in the job?
A) ranking method
B) point method
C) job grading method
D) job classification method
Answer: B

73) Which job evaluation method is used by most modern employers?

A) job classification method
B) job grading method
C) ranking method
D) point method
Answer: D

74) What are the two primary components of computerized job evaluations?
A) compensable factors and benchmark jobs
B) grade definitions and factor comparisons
C) structured questionnaires and statistical models
D) structured questionnaires and grade definitions
Answer: C

76) Salary surveys are used by firms to collect data on employee benefits as well as wage rates
for the purpose of pricing jobs.

77) The Equal Pay Act focuses on three compensable factors—know-how, problem solving, and
accountability.

78) An advantage of the job classification method is that the objective nature of the system
makes it easy to write the class and grade descriptions.

79) If a job evaluation committee uses the ranking method, then the pay grade consists of all jobs
that fall within two or three ranks.

80) Large corporations are more likely than small businesses to use a market-based approach to
setting pay rates because it is easier for a large firm to conduct formal job evaluations.

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81) The point method of job evaluation is the most frequently used job evaluation method, but it
is also associated with lawsuits involving comparable worth. In a brief essay, explain the point
method of job evaluation and why it is problematic for firms in regards to comparable worth.
Answer: The point method is a quantitative technique. It involves identifying (1) several
compensable factors, each having several degrees, as well as (2) the degree to which each of
these factors is present in the job. Assume there are five degrees of "responsibility" a job could
contain. Further, assume you assign a different number of points to each degree of each factor.
Once the evaluation committee determines the degree to which each compensable factor (like
"responsibility" and "effort") is present in the job, it can calculate a total point value for the job
by adding up the corresponding points for each factor. The result is a quantitative point rating for
each job. Comparable worth has implications for job evaluation. Virtually every comparable
worth case that reached a court involved the use of the point method of job evaluation. By
assigning points to dissimilar jobs, point plans facilitate comparability ratings among different
jobs. Perhaps the wisest approach is for employers to price their jobs as they see fit (with or
without point plans), but to ensure that women have equal access to all jobs. In other words,
eliminate the wage discrimination issue by eliminating sex-segregated jobs..

82) Which of the following is NOT one of the compensable factors emphasized in the Equal Pay
Act?
A) skills
B) accountability
C) responsibility
D) working conditions
Answer: B

83) A is comprised of jobs of approximately equal difficulty or

importance as established by job evaluation.
A) wage curve
B) benchmark
C) pay grade
D) class
Answer: C

84) Which of the following shows the relationship between the value of the job and the average
pay for this job?
A) benchmark
B) pay grade
C) scatter plot
D) wage curve
Answer: D

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85) The purpose of the wage curve is to .

A) show the relationship between the value of the job and the current average pay rates
B) equate jobs of similar difficulty or importance as established by job evaluation
C) choose benchmark jobs within each pay grade
D) cluster jobs into logical groupings
Answer: A

86) Phil, the owner of Eastline Electronics, recently learned that the current rate being paid for
the position of engineering assistant at his firm falls significantly below the wage line. Which of
the following steps should Phil most likely take to correct this problem?
A) enact a pay freeze for that job
B) assess a decrease in wages
C) pay a one-time bonus
D) provide a pay raise
Answer: D

87) Which of the following terms refers to a series of steps or levels within a pay grade?
A) pay metric
B) pay range
C) wage class
D) wage curve
Answer: B

88) Which of the following questions is most relevant to developing a market-competitive pay
system?
A) What is the ranking of each job?
B) What is the relevant labor market?
C) What percentage of workers are contingent?
D) What are the local and federal pay regulations?
Answer: B

89) Richard was recently offered a position as vice president of marketing at a national retail
chain. As a top executive at the firm, Richard will most likely be compensated with all of the
following EXCEPT .
A) stock options
B) pension plans
C) sales commissions
D) supplemental life insurance
Answer: C

90) What is the primary purpose of offering an executive stock options in a compensation
package?

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A) providing the executive with guaranteed bonuses

B) encouraging the executive to increase the firm's value
C) enabling the firm to decrease the executive's base pay
D) offering the executive long-term retirement security
Answer: B

91) Job evaluations are used to determine the pay scale of all employees in an organization from
hourly workers to the CEO.

92) Most organizations use a market-pricing approach when determining compensation for
professional employees such as engineers and scientists.

93) In a brief essay, discuss the purpose of job evaluations. Discuss the similarities and differences
between job evaluations conducted for managerial positions and lower level positions at a firm.
Answer: Job evaluation aims to determine a job's relative worth. The job evaluation is a formal
and systematic comparison of jobs to determine the worth of one job relative to another. Job
evaluation eventually results in a wage or salary structure or hierarchy (this shows the pay rate
for various jobs or groups of jobs). The basic principle of job evaluation is this: Jobs that require
greater qualifications, more responsibilities, and more complex job duties should receive more
pay than jobs with lesser requirements. Many employers use job evaluation for pricing
managerial jobs in most large firms. The basic approach is to classify all executive and
management positions into a series of grades, each with a salary range. As with non-managerial
jobs, one alternative is to rank the executive and management positions in relation to each other,
grouping those of equal value. However, firms also use the job classification and point evaluation
methods, with compensable factors like position scope, complexity, and difficulty.
Job analysis, salary surveys, and the fine-tuning of salary levels around wage curves also play
roles.

94) What are the primary factors involved in determining compensation for a firm's CEO?
What reasons best explain compensation reductions for top executives in recent years?
Answer: For a CEO position, job evaluation typically has little relevance. One recent study
concluded that three main factors: job complexity (span of control, the number of functional
divisions over which the executive has direct responsibility, and management level), the
employer's ability to pay (total profit and rate of return), and the executive's human capital
(educational level, field of study, work experience) accounted for about two-thirds of executive
compensation variance. There are various reasons why boards are clamping down on executive
pay. The Dodd-Frank law of 2010 requires American companies give shareholders a "say on
pay." Law firms are filing class-action suits demanding information from companies about their
senior executives' pay decisions. As of 2007, the Securities and Exchange Commission (SEC)
required filing more compensation-related information, including a detailed listing of all
individual "perks" or benefits if they total more than $100,000. As of 2005, the Financial
Accounting Standards Board required that most public companies recognize as an expense the

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fair value of the stock options they grant. The Sarbanes-Oxley Act makes executives personally
liable, under certain conditions, for corporate financial oversight lapses.

95) A company using competency-based pay compensates employees for all of the following
EXCEPT .
A) behaviors
B) job title
C) knowledge
D) skills
Answer: B

96) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the
past few years, the company's market share has dropped significantly, and employee turnover has
increased. Upper management is considering the implementation of a new compensation policy
in its efforts to turn the company around. Historically, the company has paid all employees
similarly with some variation for seniority but no distinction between high and low performers.

Which of the following, if true, best supports the decision by Homelife executives to implement
competency-based pay?
A) Homelife will be using the comparable worth method of determining pay to avoid legal
problems.
B) Most Homelife managers are men, but executives hope to increase the number of minority
women working for the company.
C) Homelife plans to organize employees into teams, provide regular training, and frequently
assess workers' skills and knowledge.
D) In an effort to save money, Homelife will be reducing the employee training budget over the
next three years.
Answer: C

97) means collapsing salary grades and ranges into just a few wide levels, each of
which contains a relatively wide range of jobs and salary levels.
A) Comparable worth
B) Job evaluation
C) Broadbanding
D) Job grading
Answer: C

98) Which of the following terms refers to the requirement to pay men and women equal
wages for jobs of roughly equivalent value to the employer?
A) strategic compensation
B) comparable worth
C) broadbanding

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D) job grading
Answer: B
Chapter: 11

99) Which of the following job evaluation methods is associated with almost every comparable
worth lawsuit?
A) job classification method
B) job grading method
C) ranking method
D) point method
Answer: D

100) According to many experts, which of the following would most likely reduce the wage gap
between men and women?
A) education
B) union intervention
C) federal legislation
D) competency-based pay
Answer: A

101) Which of the following is LEAST likely a benefit of using competency based pay?
A) supporting a firm's talent management process
B) developing an efficient and legally defensible wage curve
C) aiding in the implementation of a high-performance work system
D) encouraging the development of skills needed for a firm's strategic goals
Answer: B
Chapter: 11

Chapter: 11

103) The primary advantage of broadbanding is that it provides greater flexibility into
employee assignments.

104) In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar
such as nursing to fire fighting.

105) A key issue in comparable worth is whether women should be paid equal wages for jobs
that are truly equal to men's or just comparable to men's jobs.

106) Due to federal legislation, greater opportunities for higher learning, and more women in
the workforce, women in the U.S. earn approximately 90% as much as men.

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107) Competency-based pay systems offer employers more flexibility but are less efficient than
traditional job evaluation methods.

108) In a brief essay, compare and contrast the use of pay ranges with broadbanding.
Answer: There are several reasons to use pay ranges for each pay grade. First, it lets the
employer take a more flexible stance in the labor market. For example, it makes it easier to
attract experienced, higher-paid employees into a pay grade at the top of the range, since the
starting salary for the pay grade's lowest step may be too low to attract them. Pay ranges also let
companies provide for performance differences between employees within the same grade or
between those with different seniorities. Companies create broadbands for several reasons. The
basic advantage is that it injects greater flexibility into employee assignments. It is especially
sensible where firms organize into self-managing teams. However, broadbanding can be
unsettling, particularly for new employees. "There's a sense of permanence in the set of job
responsibilities often attached to job titles," one manager says. That sense of permanence isn't
nearly as clear when employees move frequently from project to project and job to job.

109) What are the key differences between competency-based pay and traditional job-based pay?
Which method would you prefer if you were an employee? Why?
Answer: With job-based pay (JBP), the employee receives the pay attached to the job regardless
of whether the employee has the necessary competency for performing the job. With
competency-based pay (CBP), the supervisor certifies employee competency prior to any pay
increases. With JBP, pay changes when one switches jobs. With CBP, one must demonstrate
proficiency prior to getting a raise. Also, one could do a lower-paying job but still receive a
higher pay based on skill. JBP systems may tie pay to grade or seniority. CBP pays for
competencies, not seniority. There is more advancement possible with CBP plans than with JBP.
CBP enhances organizational flexibility because workers' skills are applicable to more jobs, and
therefore more portable.

110) What are the five main elements of a competency-based pay plan?
Answer: Most competency-based pay plans contain five elements. The employer defines specific
required skills and chooses a method for basing the person's pay on his or her skills. A training
system lets employees acquire skills. There is a formal competency testing system. And, the work
is designed so that employees can easily move among jobs of varying skill levels.

Human Resource Management, 15e (Dessler)

Chapter 8 Pay for Performance and Financial Incentives

1) Frederick Taylor referred to the tendency of employees to work at the slowest pace possible
and to produce at the minimum acceptable level as .
A) social loafing
B) systematic soldiering
C) work shifting

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D) group logrolling
Answer: B

2) Which of the following terms refers to financial rewards paid to workers whose production
exceeds some predetermined standard?
A) indirect financial payments
B) merit payments
C) hardship allowances
D) financial incentives
Answer: D

3) A management approach based on improving work methods through observation and analysis
is known as .
A) strategic management
B) scientific management
C) management by objectives
D) performance management
Answer: B

4) Who proposed a two-factor theory that explains how motivator factors relate to satisfaction
and hygiene factors relate to dissatisfaction?
A) Frederick Taylor
B) Abraham Maslow
C) Frederick Herzberg
D) David McClelland
Answer: C

5) Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?

A) Highly motivated workers rely equally on lower-level and higher-level needs.
B) Assigning workers to teams can eliminate job-associated stress and frustration.
C) Providing employees with feedback and challenge satisfies their lower-level needs.
D) Managers can create a self-motivated workforce by providing feedback and recognition.
Answer: D
Managers do this by enriching workers' jobs so that the jobs are more challenging and by
providing feedback and recognition.

6) According to Herzberg's Hygiene-Motivator theory, which of the following factors will most
likely satisfy employees' higher-level needs?
A) base salary
B) achievement
C) incentive pay
D) co-worker relationships

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Answer: B

7) Which of the following found that extrinsic rewards could detract from an employee's
intrinsic motivation?
A) Frederick Taylor
B) Frederick Herzberg
C) David McClelland
D) Edward Deci
Answer: D

8) Rebecca's manager wants to acknowledge her outstanding service record for the past quarter.
The manager decides to give Rebecca a bonus of $1000 as a reward. According to Edward Deci,
which of the following will most likely occur as a result?
A) The bonus will encourage Rebecca to work harder than before.
B) The bonus will detract from Rebecca's inner desire to work hard.
C) Rebecca's bonus will satisfy her higher-level needs and increase her motivation.
D) Rebecca will feel inadequate because the bonus fails to address hygiene factors.
Answer: B

9) According to Victor Vroom, expectancy could also be referred to as the .

A) probability that effort will lead to success
B) relationship between performance and reward
C) perceived value a person attaches to a reward
D) employer's strategy for motivating employees
Answer: A

10) The perceived relationship between successful performance and obtaining the reward is
referred to by Vroom as .
A) instrumentality
B) valence
C) expectancy
D) optimism
Answer: A

11) In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents

.
A) existence
B) expectancy
C) esteem
D) energy
Answer: B

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12) In Vroom's theory of motivation, motivation is equal to E * I * V, where I represents

.
A) intrinsic needs
B) internalization
C) instrumentality
D) incentives
Answer: C

13) In Vroom's theory of motivation, which of the following terms refers to the perceived value a
person attaches to a reward?
A) valence
B) instrumentality
C) expectancy
D) variable pay
Answer: A
Chapter: 12

14) According to Vroom's theory, when managers design incentive plans they should do all of
the following EXCEPT .
A) focus on behavior modification methods
B) make incentive plans easy to understand
C) provide training and support to employees
D) boost the confidence level of employees
Answer: A

15) Behavior modification is based upon the principles of rewards and punishments advanced
by
.
A) Frederick Taylor
B) Frederick Herzberg
C) B.F. Skinner
D) Edward Deci
Answer: C
Chapter: 12

16) Which of the following terms refers to changing behavior through rewards or punishments
that are contingent on performance?
A) behavior modification
B) personal development
C) instrumentality
D) internal motivation
Answer: A

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17) Which of the following is NOT a basic tenet of behavior modification?

A) Behavior that leads to rewards tends to be repeated.
B) Properly scheduled rewards can be used to encourage some behaviors.
C) Properly scheduled punishments can be used to minimize some behaviors.
D) Employees must understand the link between rewards, punishments, and behavior.
Answer: D

18) Which of the following terms refers to an incentive plan that ties a group's pay to the firm's
profitability?
A) piecework
B) variable pay
C) pay-for-performance
D) merit pay
Answer: B

19) Under the Fair Labor Standards Act, which of the following would NOT be included in
overtime pay computations?
A) bonus for new hires
B) Christmas bonus
C) efficiency bonus
D) union contract bonus
Answer: B

20) Robert Katz popularized the use of financial incentives for workers whose production
exceeds some predetermined standard.
Chapter: 12

21) Most firms link employees' pay to performance because financial incentives are extremely
successful at motivating employees to perform above required standards.

22) According to Herzberg's theory, a manager would be able to motivate an employee with
challenging tasks.

23) In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and
challenging assignments are hygiene factors.
Chapter: 12

Chapter: 12

25) According to Herzberg's motivation theory, good working conditions will prevent
dissatisfaction but will not lead to feelings of satisfaction.

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26) The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards
to motivate employees.

27) Vroom's expectancy theory observes that people will not pursue rewards that they find
unattractive or where their chances of success are very low.

28) According to Vroom's theory, if expectancy, instrumentality, or valence is equal to zero,

there will be no employee motivation.
Motivation = (E × I × V), where E represents expectancy, I instrumentality, and V valence.
If E or I or V is zero or inconsequential, there will be no motivation.

29) Behavior modification is based on the idea that people will repeat behavior for which they
are punished.

30) Behavior modification principles can be useful to managers who seek to change employee
behavior through rewards or punishments linked to performance.

31) If an employee earns an incentive in the form of a prize or cash award, the value of the
award is not included when calculating the employee's overtime pay.

32) Briefly describe Vroom's theory and its three components. How can managers use Vroom's
theory as they develop effective incentive plans?
Answer: Vroom states that a person's motivation to exert some level of effort or specific
behavior is a function of three things: valence, instrumentality, and expectancy. Valence is the
perceived value the person attaches to the reward. Instrumentality is the perceived relationship
between successful performance and obtaining the reward. Expectancy is the probability that
performance of the behavior or exertion of the effort will result in achieving the desired reward.
Motivation is equal to E * I * V. Victor Vroom would say there should be a clear link between
effort and performance, and between performance and reward, and that the reward must be
attractive to the employee.

33) What type of pay plan is being used when workers are paid a sum for each unit they
produce?
A) competency-based pay
B) job-based pay
C) piecework
D) bonus
Answer: C

34) Which of the following terms refers to an incentive plan in which a person is paid a sum
for each item he or she makes or sells, with a strict proportionality between results and

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rewards?
A) variable pay
B) straight piecework
C) straight hourly pay
D) standard hour plan
Answer: B

35) In which of the following do workers receive a basic hourly rate plus a premium equal to the
percent by which their performance exceeds the standard?
A) variable pay
B) straight piecework
C) standard hour plan
D) standard piecework
Answer: C

36) All of the following are disadvantages associated with piecework plans EXCEPT that
workers .
A) resist attempts to modify production standards
B) focus on production quantity instead of quality
C) view the plans as unfair and complicated
D) dislike new technology or processes
Answer: C

37) Which of the following is the primary advantage of piecework plans?

A) powerful incentive to workers
B) workers earn efficiency bonuses
C) firms save on overtime wages
D) entices independent contractors
Answer: A

38) Which of the following terms refers to any salary increase the firm awards to an individual
employee based on his or her individual performance?
A) competency-based pay
B) variable pay
C) merit pay
D) base pay
Answer: C

39) How does merit pay differ from a bonus?

A) Merit pay becomes part of an employee's base pay, but a bonus does not.
B) A bonus becomes part of an employee's base pay, but merit pay does not.
C) Merit pay is linked to individual performance, while a bonus is linked to profits.

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D) A bonus is linked to individual performance, while merit pay is linked to profits.

Answer: A

40) Studies indicate that in order for merit pay to be most effective, it should be linked to
.
A) company profits
B) annual base salary
C) employee overtime
D) employee performance
Answer: D

41) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality
products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the
company continues to grow, its top executives want to ensure that employees are appropriately
paid for their performance and that financial incentives are both fair and effective. Currently, the
firm provides merit raises based on performance appraisals; however, executives are considering
changing the current incentive plan.

Which of the following, if true, supports the argument that Ryobi should eliminate all merit
raises?
A) Performance appraisals at Ryobi occur annually, and standards vary from manager to
manager.
B) Ryobi employees have the option of accepting lump-sum raises or traditional merit raises.
C) Ryobi recently began using an enterprise incentive management system to automate
compensation.
D) The commission percentage for Ryobi salespeople is based on the ability to meet monthly
quotas.
Answer: A

42) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality
products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the
company continues to grow, its top executives want to ensure that employees are appropriately
paid for their performance and that financial incentives are both fair and effective. Currently, the
firm provides merit raises based on performance appraisals; however, executives are considering
changing the current incentive plan.

Which of the following, if true, undermines the argument that Ryobi should discontinue all merit
raises?
A) Ryobi employees have expressed that they would prefer stock options to merit raises.
B) Ryobi managers have not received significant training about conducting performance
appraisals.
C) Ryobi managers have noticed significant productivity improvements among employees who

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receive merit raises.

D) Ryobi's top executives receive a combination of base salary and stock options to encourage
them to focus on the firm's strategic goals.
Answer: C
Chapter: 12

43) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality
products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the
company continues to grow, its top executives want to ensure that employees are appropriately
paid for their performance and that financial incentives are both fair and effective. Currently, the
firm provides merit raises based on performance appraisals; however, executives are considering
changing the current incentive plan.

Which of the following questions is most relevant to the decision by Ryobi executives to
discontinue all merit raises?
A) What are the guidelines for implementing a gainsharing plan?
B) What types of merit raises are effective for high-performing managers?
C) What organization-wide incentive plans are used by other manufacturing firms?
D) What is the connection between merit pay increases and employee productivity?
Answer: D

44) is a program where informal manager-employee exchanges such as praise,

approval, or expressions of appreciation are given for a job well done.
A) Merit pay
B) A social recognition program
C) Performance feedback
D) Variable pay
Answer: B
Chapter: 12

45) Craig is a line manager at a paper supply company. All of the following are methods that
Craig should most likely implement to motivate his subordinates EXCEPT
.
A) recognizing an employee's contribution
B) encouraging workers to earn overtime pay
C) gaining agreement on goals with employees
D) using positive reinforcement on a daily basis
Answer: B

46) Which of the following was shown by the Harvard Business School to have the greatest
impact on employee engagement?
A) feedback

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B) job design
C) responsibility
D) challenging work
Answer: B

47) The complicated nature of piecework makes it an unpopular individual incentive plan among
employers.

48) The standard hour plan is like the piece rate plan except instead of getting a rate per piece,
the employee gets a premium equal to the percent by which his or her performance exceeds the
standard.

49) With a standard hour plan, employers do not need to recalculate piece rates when changes
are made to the hourly pay rate.

50) Employers are shifting away from piecework in many industries due to the incentive plan's
poor reputation.

52) According to the FLSA, merit pay can only be given to exempt, nonmanagement employees
at a company.

53) Lump sum merit increases can be a more significant motivator than traditional merit pay
because the amount seems greater when received all at once.

54) In order for a firm to have an effective incentive plan, there should be a clear relationship
between employee effort and quantity or quality of output.

55) Dual-career ladders are effective tools for managing the professional pay of working mothers
who desire a work-life balance.
Therefore, many employers institute dual career paths, in other words one path for managers, and
another for technical experts.

56) Explain the advantages and disadvantages of using piecework as a pay plan.
Answer: Piecework incentive plans have several advantages. They are simple to calculate and
easily understood by employees. Piece rate plans appear equitable in principle, and in their
incentive value, and are powerful since they tie pay directly to performance. Piecework also has
disadvantages. The main one is its unsavory reputation among many employees based on some
employers' habit of arbitrarily raising production standards whenever they found their workers
earning "excessive wages." A more subtle disadvantage is that since piece rate are quoted on a
per piece basis, in workers' minds, production standards (pieces per hour) become tied

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inseparably to the amount of money earned. Piece rate systems thus risk engendering rigidity.
When the employer tries to revise production standards, resistance ensures. Employees become
preoccupied with producing the number of units needed. They can become less focused on
quality and may resist switching jobs (since doing so could reduce productivity).

57) Employers may award merit pay as traditional merit increases that increase an employee's
base pay or as a lump sum merit raise. Explain the pros and cons of these two choices.
Answer: Traditional merit increases are cumulative but most lump sum merit raises are not. For
employees receiving traditional merit increases, raises in subsequent years are based on the new
higher amount. With lump sum merit raises, payroll expenses can be minimized over time while
still offering an incentive. Further, the lump sum amount may seem more impressive to employees
because it is a large amount paid at one time. For instance, a lump sum merit payment of $1500
may seem more desirable than a traditional weekly merit payout of $29 for 52 weeks.

58) Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive
to do so. Identify some positive reinforcement rewards that a manager could use on a day-to-day
basis to reward employees.
Answer: There is a long list possible, such as: employee recognition, gift certificates, special
events, cash rewards, merchandise incentives, e-mail/print communications, training programs,
work/life benefits, variable pay, group travel, individual travel, sweepstakes, encouraging
learning and continuous improvement, providing encouragement, giving compliments, allowing
employees to set their own goals, expressing appreciation in front of others, sending a note of
thanks, giving an employee-of-the-month award, providing a bigger or nicer desk or office.
Research indicates that both the financial and nonfinancial incentives improve employee and
store performance. The term recognition program usually refers to formal programs, such as
employee-of-the-month programs. Social recognition programs generally refer to informal
manager-employee exchanges such as praise, approval, or expression of appreciation for a job
well done. Employers often supplement financial incentives with various non-financial and
recognition based awards. Performance feedback means providing quantitative or qualitative
information on task performance to change or maintain performance; showing workers a graph
of how their performance is trending is an example.

59) Enterprise incentive management systems enable firms to .

A) compare corporate incentive programs
B) accurately calculate sales commissions
C) efficiently administer employee incentive programs
D) create a matrix of merit awards and incentive options
Answer: C

60) A straight salary is most appropriate when a salesperson's primary duties involve
.
A) finding new clients

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B) meeting sales quotas

C) pushing hard-to-sell items
D) fostering relationships with customers
Answer: A
Chapter: 12

61) Using a straight salary to compensate salespeople is most likely ineffective because it
.
A) discourages sales flexibility
B) lacks connection to performance
C) makes it hard to switch territories
D) depends on annual corporate profits
Answer: B

62) All of the following are disadvantages of straight commission plans EXCEPT
.
A) salespeople avoid pushing hard-to-sell items
B) salespeople fail to service small accounts
C) payments are complicated to calculate
D) significant variations in pay exist
Answer: C

63) Which of the following is the primary advantage of using a combination of salary and
commission as compensation for salespeople?
A) provides a guaranteed minimum salary
B) allows freedom to choose own work activities
C) completely links to performance
D) offers simple administration
Answer: A

64) Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set
commission rates informally without considering how much each sale covered expenses. As a
result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid.
Edward wants to motivate his sales force but avoid having excessive commissions.

All of the following questions are relevant to developing an effective sales compensation plan
EXCEPT:
A) How much time does each Wilson salesperson spend with qualified prospects?
B) What are the motivation and skill levels of Wilson sales team members?
C) What is the average annual bonus received by Wilson's CEO?
D) What is Wilson's desired profit for each car sale?
Answer: C

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65) Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set
commission rates informally without considering how much each sale covered expenses. As a
result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid.
Edward wants to motivate his sales force but avoid having excessive commissions.

Which of the following, if true, supports the argument that Edward should pay his sales team a
combination of salary plus commission?
A) Wilson Auto Mart's sales team consists of high-performing, experienced salespeople.
B) Wilson Auto Mart has a sales force that has a significant desire for a floor to their earnings.
C) Each Wilson Auto Mart salesperson is encouraged to sell at least ten vehicles each month.
D) Wilson Auto Mart salespeople are primarily asked to find new clients and service current
accounts.
Answer: B

66) What percentage of employers track sales performance using spreadsheets?

A) 15%
B) 35%
C) 60%
D) 85%
Answer: C

68) You are the manager of large used car retailer, and sales are sluggish. What incentive plan
would be best for motivating your sales team?
Answer: Most companies pay salespeople a combination of salary and commissions, usually
with a sizable salary component. An incentive mix of about 70% base salary/30% incentive
seems typical; this cushions the salesperson's downside risk (of earning nothing), while limiting
the risk that the commissions could get out of hand from the firm's point of view. Combination
plans give salespeople a floor to their earnings, let the company specify what services the salary
component is for (such as servicing current accounts), and still provide an incentive for superior
performance.

69) Which of the following terms refers to the right to purchase a stated number of shares of a
company stock at today's price at some time in the future?
A) at-risk variable plan
B) multiplier method
C) stock option
D) gainsharing plan
Answer: C

70) With which of the following can an executive NOT profit until the stock makes significant

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gains?
A) indexed options
B) phantom stock
C) restricted stock
D) premium priced options
Answer: D

71) With a , an executive receives units instead of shares of company stock. In the
future, the executive receives cash equal to the appreciation of the units owned.
A) nonqualified stock option
B) premium priced option
C) phantom stock plan
D) restricted stock plan
Answer: C

72) Which term refers to payments companies make in connection with a change in ownership or
control of a company?
A) pension
B) golden parachute
C) retirement bonus
D) stock option
Answer: B

73) The most common eligibility determinant for bonuses is:

A) salary grade
B) job title
C) officer status
D) base salary
Answer: A

75) Cash, stock, stock options, stock appreciation rights, and phantom stock are known as
"golden handcuffs" because they are long-term incentives for executives.

76) Experts assert that stock options encourage executives to take dangerous risks and are to
blame for many corporate scandals.

77) Golden parachutes are large payments companies make to executives in connection with a
change in company ownership or control.

78) You are the CEO of Blue Bay Motor Boat Company, a mid-size firm that manufactures

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speed boats. What incentive plan would you implement for the firm's engineers? What incentive
plan would you implement for the firm's managers? Explain why.
Answer: Stock options, bonuses, and profit sharing would be appropriate for the engineers.
Recognition-based awards and nonfinancial incentives would most likely encourage engineers to
work hard as well. For executives, stock options, performance shares, stock plans, and golden
parachutes are useful long-term incentives. Annual bonuses are useful in motivating the short-
term performance of managers.

79) What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the
legislation? Why or why not?
Answer: The Sarbanes-Oxley Act of 2002 affects how employers formulate their executive
incentive programs. Congress passed Sarbanes-Oxley to inject a higher level of responsibility into
executives' and board members' decisions. It makes them personally liable for violating their
fiduciary responsibilities to their shareholders. The act also requires CEOs and CFOs of a public
company to repay any bonuses, incentives, or equity-based compensation received from the
company during the 12-month period following the issuance of a financial statement that the
company must restate due to material noncompliance with a financial reporting requirement
stemming from misconduct.

80) All of the following are advantages of team incentive plans EXCEPT that
.
A) jealousy is reduced
B) wage equity is guaranteed
C) team planning is reinforced
D) problem solving is encouraged
Answer: B

81) The employees at DataMax participate in a profit-sharing plan. DataMax distributes 15% of
its profits as profit shares to employees at regular intervals. Which of the following is most likely
used at DataMax?
A) current profit-sharing
B) Lincoln incentive system
C) deferred profit-sharing plan
D) employee stock ownership plan
Answer: A

82) Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's
retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's
employer?
A) deferred profit-sharing plan
B) Lincoln incentive system
C) Jefferson incentive system

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D) gainsharing plan
Answer: A

83) Which profit-sharing plan provides tax advantages for employees by postponing income
taxes, often until the employee retires?
A) cash plan
B) Lincoln incentive system
C) deferred profit-sharing plan
D) employee stock ownership plan
Answer: C

84) The Scanlon plan includes all of the following features EXCEPT .
A) identity
B) competency
C) a philosophy of cooperation
D) a focus on individual achievement
Answer: D

85) Which incentive plan is based on a philosophy that managers and employees must cooperate
together?
A) cash plan
B) Scanlon plan
C) deferred profit-sharing plan
D) employee stock ownership plan
Answer: B

86) Which of the following best explains identity in regards to the Scanlon plan?
A) philosophy of cooperation among employees
B) clear articulation of the company mission
C) high level of competency from all employees
D) corporate-wide benefits and savings
Answer: B

87) Competence in the Scanlon plan refers to a focus on .

A) cooperation
B) corporate vision
C) employee abilities
D) significant improvements
Answer: C

88) The Scanlon plan is an early version of a plan, an incentive plan that
engages employees in a common effort to achieve productivity objectives.

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A) performance achievement
B) golden parachute
C) gainsharing
D) variable pay
Answer: C

89) Gainsharing is an incentive plan that _.

A) uses a trust to hold stock in individual employee accounts and distributes it to employees
upon retirement
B) engages employees in a common effort to achieve a company's productivity objectives with
any resulting cost-savings gains shared among employees and the company
C) contributes company shares of its own stock or cash to be used to purchase company stock to
a trust established to purchase shares of the firm's stock for employees
D) provides tax advantages for employees by deferring income taxes, often until the employee
retires
Answer: B

90) Which of the following is NOT a type of gainsharing plan?

A) Improshare
B) Lincoln
C) Rucker
D) Roth
Answer: D

91) Tyler Oil offers a profit-sharing plan to its employees. Each year, Tyler Oil distributes total
annual profits less taxes among employees based on employee merit ratings. Which of the
following is most likely used by Tyler Oil?
A) cash plan
B) Lincoln incentive system
C) deferred profit-sharing plan
D) employee stock ownership plan
Answer: B

92) The Lincoln incentive system is an incentive plan that .

A) uses a trust to hold stock in individual employee accounts and distributes it to employees
upon retirement
B) engages many or all employees in a common effort to achieve a company's productivity
objectives with any resulting cost-savings gains shared among employees and the company
C) contributes company shares of its own stock or cash to be used to purchase company stock to
a trust established to purchase shares of the firm's stock for employees
D) involves the firm distributing total annual profits each year among employees based on their
merit rating

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Answer: D

93) When hired by Delmar Designs, Shane agreed to forego 6% of his normal pay if he didn't
meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does
Shane most likely participate?
A) earnings-at-risk pay plan
B) variable risk sharing plan
C) at-risk gainsharing plan
D) employee at-risk plan
Answer: A

94) Elaine, the HR manager at Western Enterprises, will get stock distributed to her from a trust
when she retires. This is known as a(n):
A) profit-sharing plan
B) earnings-at-risk plan
C) Employee stock ownership plan (ESOP)
D) gainsharing plan
Answer: C

95) In , employees agree to put some portion of their normal pay at risk if they
don't meet their goals, in return for a much larger bonus if they exceed their goals.
A) earnings-at-risk pay plans
B) gainsharing
C) the Scanlon plan
D) team incentive plans
Answer: A

96) Studies suggest that ESOPs probably do lead to increases in employee:

A) performance
B) sense of ownership
C) motivation
D) helping behaviors
Answer: B

97) What percentage of large employers use some type of group- or team-based incentives?
A) 15%
B) 40%
C) 60%
D) 85%
Answer: D

98) The main feature of broad-based stock option plans is:

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A) monthly stock options

B) option to buy as many shares as desired
C) restricted to closely held organizations
D) all or most employees can participate
Answer: D

99) Employees at GameTime Software participate in a gainsharing plan. Employee bonuses are
calculated by dividing payroll expenses by total sales. GameTime Software most likely uses
which of the following plans?
A) Lincoln
B) Rucker
C) Improshare
D) Scanlon
Answer: D

100) McDonald Manufacturing contributes cash to a trust established to purchase shares of

McDonald stock for employees. Which of the following is most likely offered by McDonald
Manufacturing?
A) cash plans
B) Lincoln incentive systems
C) deferred profit-sharing plans
D) employee stock ownership plans
Answer: D

101) Which of the following is the primary benefit of employee stock ownership plans?
A) Firms are able to implement the plans with minimal costs and complications.
B) Firms pay distribution taxes for employees prior to retirement.
C) Firms may borrow against employee stock held in trust.
D) Employees are able to diversify their investments.
Answer: C

102) Research indicates that employee stock ownership plans most likely _ .
A) encourage employees to retire too early
B) place firms at greater risk for employee lawsuits
C) increase employee commitment
D) encourage transparency within global organizations
Answer: C

103) Top executives at DYS Enterprises are considering the idea of implementing an employee
incentive plan. Which of the following suggests that an incentive plan would NOT be
appropriate at DYS Enterprises?
A) Delays rarely occur.

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B) The job is standardized.

C) Employees are unskilled but motivated.
D) A link exists between employee effort and output.
Answer: C
Chapter: 12

104) Studies suggest that team incentive plans enhance productivity because the work load is
equally distributed among team members, which fosters cooperation.

106) Research suggests that employee stock ownership plans discourage employees from
developing a sense of ownership in and commitment to the firm, which is why the programs are
decreasing in popularity.

107) Gainsharing is an incentive plan where employee efforts that result in cost-savings gains are
shared among employees and the company.

108) In a brief essay, discuss the difference between annual bonuses for employees and
gainsharing plans.
Answer: Most firms have annual bonus plans aimed at motivating managers' short-term
performance. Short-term bonuses can easily result in plus or minus adjustments of 25% or more
to total pay. Three factors influence one's bonus: eligibility, fund size, and individual
performance. Gainsharing is an incentive plan that engages many or all employees in a common
effort to achieve a company's productivity objectives, with any resulting cost-savings gains
shared among employees and the company. Popular gainsharing plans include the Scanlon,
Lincoln, Rucker, and Improshare plans.
The basic difference among these plans is how employers determine employee bonuses. The
Scanlon formula divides payroll expenses by total sales (or, sometimes, by total sales plus
increases in inventory). In one version of the Lincoln incentive system, first instituted at the
Lincoln Electric Company of Ohio, employees work on a guaranteed piecework basis. The
company then distributes total annual profits (less taxes, 6% dividends to stockholders, and a
reserve) each year among employees based on their merit rating. Most firms customize their
gainsharing plans.

109) Explain the advantages of employee stock ownership plans.

Answer: The company that offers the ESOP receives a tax deduction equal to the fair market
value of the shares that are transferred to the trustee and can claim an income tax deduction for
dividends paid on ESOP-owned stock. Employees aren't taxed until they receive a distribution
from the trust, usually at retirement when the tax rate is lower. The Employee Retirement Income
Security Act allows a firm to borrow against employee stock held in trust and then repay the loan
in pretax rather than after-tax dollars. ESOPs also help shareholders of closely held corporations
to diversify their assets by placing some of their own shares of the company's stock into the

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ESOP trust and purchasing other marketable securities for themselves in their place.
ESOPs also encourage employees to develop a sense of ownership in and commitment to the
firm. They provide increased financial incentives, create a sense of ownership, and help to build
teamwork.

110) Describe what a Scanlon Plan is and its 5 major elements.

Answer: The Scanlon plan was developed in 1937 by Joseph Scanlon, a United Steel Workers
Union official.
Scanlon plans have five basic features. The first is Scanlon's philosophy of cooperation. This
philosophy assumes that managers and workers must rid themselves of the "us" and "them"
attitudes that normally inhibit employees from developing a sense of ownership in the company.

A second feature is what its practitioners call identity. This means that in order to focus employee
involvement, the company must articulate its mission or purpose, and employees must understand
how the business operates in terms of customers, prices, and costs.

Competence is a third basic feature. The program, say three experts, "explicitly recognizes that a
Scanlon plan demands a high level of competency from employees at all levels." This suggests
careful selection and training.

The fourth feature of the plan is the involvement system. Employees present improvement
suggestions to the appropriate departmental-level committees, which transmit the valuable ones
to the executive-level committee. It then decides whether to implement the suggestion.

The fifth element of the plan is the sharing of benefits formula. If a suggestion is implemented
and successful, all employees usually share in 75% of the savings. For example, assume that the
normal monthly ratio of payroll costs to sales is 50%. (Thus, if sales are $600,000, payroll costs
should be $300,000.) Assume the firm implements suggestions that result in payroll costs of
$250,000 in a month when sales were $550,000 and payroll costs therefore should have been
$275,000 (50% of sales). The savings attributable to these suggestions is $25,000 ($275,000
minus $250,000). Workers would typically split 75% of this ($18,750), while $6,250 would go to
the firm. In practice, the firm sets aside about one-quarter of the $18,750, for months when payroll
costs exceed the standard.

Human Resource Management, 15e (Dessler)

Chapter 9 Benefits and Services

1) The indirect financial and nonfinancial payments employees receive for continuing their
employment with a company are called .
A) compensation
B) salary
C) benefits

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D) remuneration
Answer: C

2) Nonfinancial payments like health and life insurance, pensions, time off with pay, and child
care facilities are examples of .
A) competency-based incentives
B) variable pay
C) benefits
D) bonuses
Answer: C

3) Which of the following benefits is required by federal or state law?

A) unemployment insurance
B) disability insurance
C) health insurance
D) pensions
Answer: A

4) All of the following benefits are required by federal or state law EXCEPT .
A) workers' compensation
B) unemployment insurance
C) disability insurance
D) maternity leave
Answer: C

5) Which of the following terms refers to benefits for time not worked, such as unemployment
insurance, vacation and holiday pay, and sick pay?
A) supplemental pay benefits
B) employee assistance
C) financial incentives
D) premium benefits
Answer: A

6) Keith works as a construction foreman, and he is viewed as a reliable, competent employee.

Keith was recently injured in a car accident while on vacation, and his injuries are so severe that
he will not be able to return to work. Which of the following would most likely provide Keith
with benefits?
A) group life insurance
B) unemployment insurance
C) workers' compensation insurance
D) supplemental unemployment benefits
Answer: B

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7) Which of the following provides pay to an employee when he or she is temporarily out of
work because of illness?
A) sick leave
B) severance pay
C) supplemental pay
D) workers' compensation
Answer: A

8) What is the maximum number of weeks of unpaid leave that an employee may take under the
Family and Medical Leave Act?
A) six
B) ten
C) twelve
D) sixteen
Answer: C

9) All of the following are true statements regarding the application of the Family and Medical
Leave Act EXCEPT .
A) employers must receive advance notice and medical certification from the employee
B) eligible employees must have worked for the employer for at least one year
C) employees must be employed at job sites with at least 50 employees
D) up to 12 weeks must be granted in a 12-month period
Answer: A

10) To be eligible for leave under the Family and Medical Leave Act, an employee must have
worked hours during the past twelve consecutive months.
A) 850
B) 1000
C) 1250
D) 1600
Answer: C

11) Eric has worked full-time for a large manufacturing company for over three years. Eric and
his wife have recently adopted a baby, and Eric wants to take time off from work to care for the
child. Which of the following laws most likely applies to Eric's situation?
A) Pregnancy Discrimination Act
B) Family and Medical Leave Act
C) Title VII of the Civil Rights Act
D) Health Insurance Portability and Accountability Act
Answer: B

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12) The Family and Medical Leave Act .

A) provides guidelines regarding what rates of return employers should use in computing their
pension plan values
B) ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month
period for the birth or care of a newborn child, placement of a child for adoption, to care for a
spouse, child, or parent with a serious health condition, or to care for the employee's own serious
health condition
C) prohibits an employer's health plan from using incentives to encourage employees to leave the
hospital after childbirth after less than the legislatively-determined minimum stay
D) sets minimum requirements for protecting individuals' health-care data accessibility
and confidentiality
Answer: B

13) Which of the following is NOT an employer cost associated with granting leave to
employees under the Family and Medical Leave Act?
A) paying temporary workers
B) recruiting replacement workers
C) paying employee for time not worked
D) compensating for lower productivity of new workers
Answer: C

14) Rita was terminated from her position as an accounts manager with Carson Financial, Inc.
On her last day at work, Rita received a check for $3,500. Which of the following did Rita most
likely receive from Carson Financial?
A) merit pay
B) annual bonus
C) severance pay
D) performance pay
Answer: C

15) All of the following are typical reasons that employers provide severance pay
when downsizing EXCEPT .
A) reducing litigation chances
B) ensuring good public relations
C) reassuring remaining employees
D) adhering to government requirements
Answer: D

16) Elizabeth works at an auto manufacturing firm that recently shut down for five weeks to
change machinery. However, during the shutdown, Elizabeth was able to maintain her standard
of living because of the firm's .

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A) supplemental unemployment benefits

B) workers' compensation insurance
C) disability insurance
D) severance pay
Answer: A

17) Which of the following requires employers to treat women affected by pregnancy, childbirth,
or related medical conditions the same as any employee not able to work, with respect to all
benefits?
A) Family and Medical Leave Act
B) Pregnancy Discrimination Act
C) Comprehensive Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act
Answer: B

18) Benefits are an important aspect of employee compensation, and they involve the direct
financial payments employees receive for remaining with an employer.

19) Health care costs have dropped significantly in recent years due to government intervention
and the increased use of HMOs.

21) Legally required benefits, such as unemployment insurance, are more costly to employers
than health insurance.

22) Supplemental pay benefits can provide employees with time-off-with-pay for jury duty,
vacations, funerals, and military responsibilities.

23) Most employees in America receive fourteen days of leave after working for a company for
one year.
Chapter: 13

25) Federal law requires private sector employers to grant a minimum amount of paid vacation
leave.

26) Pooled paid leave plans combine sick leave, vacation, and personal days into a single leave
pool and have been blamed for increasing employee absenteeism.

27) The stipulations of the Family and Medical Leave Act apply to private employers of 50 or
more employees.

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28) Since leaves associated with the Family and Medical Leave Act do not require employers to
pay salaries, employers are not financially affected.

29) What benefits are required by federal or state laws? What benefits are discretionary on the
part of employers? Describe the basic nature of several of these benefits.
Answer: Benefits required by law include Social Security, unemployment insurance, workers'
compensation, and leaves under the FMLA. Discretionary benefits include disability, health, and
life insurance, pension plans, executive perks, paid time off, employee assistance programs, and
family-friendly benefits.

30) What is sick leave? Why is sick leave problematic for many employers? Discuss some ways
organizations can reduce sick leave related costs.
Answer: Sick leave provides pay to employees when they are out of work due to illness. Most
sick leave policies grant full pay for a set number of sick days and the sick days accumulate over
time. The problem with sick leave is that many employees use sick leave for reasons other than
illness. Some use the days as vacation or to take care of family issues, personal needs, and stress.
Such absenteeism costs U.S. employers perhaps $100 billion per year, with personal illness
accounting for about a third of the absences.

Employers use several tactics to reduce excessive sick leave absence. Some repurchase unused
sick leave at the end of the year by paying their employees a sum for each unused sick day. The
problem is that legitimately sick employees may come to work. Others hold monthly lotteries in
which only employees with perfect monthly attendance are eligible for a cash prize. At Marriott,
employees can trade the value of some sick days for other benefits. Others aggressively
investigate all absences, calling absent employees at home. Many employers use pooled paid
leave plans (or "banks"). These plans lump together sick leave, vacation, and personal days into a
single leave pool.

31) Who contributes funds for workers' compensation benefits?

A) state governments
B) federal government
C) insurance providers
D) employers
Answer: D

32) Which of the following provides income and medical benefits to employment-related
accident victims or their dependents?
A) severance pay
B) family and medical leave
C) workers' compensation
D) health insurance benefits

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Answer: C

33) Employers must provide employees who have work-related injuries with all of the following
EXCEPT .
A) cash benefits
B) medical services
C) hospital services
D) time off with full pay
Answer: D

34) Which of the following conditions must be met for an injured employee to earn workers'
compensation from the employer?
A) The employee was injured while on the job.
B) The employee suffered the injury through no fault of his or her own.
C) The employee worked full-time for the employer for a minimum of 12 months.
D) The employee received adequate job training to understand the position's requirements.
Answer: A

35) Which of the following is a popular workers' compensation cost-control measure that involves
coordinating the medical care and health insurance coverage for each injured employee?
A) nurse management
B) case management
C) health maintenance
D) medical rehabilitation
Answer: B

36) Which health benefit is offered by almost all employers?

A) vision insurance
B) chiropractic insurance
C) prescription drug coverage
D) health maintenance organization
Answer: C
Chapter: 13

37) Which of the following is a prepaid health care system that provides medical services for
employees who pay a nominal fee?
A) PPO
B) HMO
C) DMO
D) ESOP
Answer: B

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38) are groups of health care providers that contract with employers, insurance
companies, or third-party payers to provide medical care services at a reduced fee.
A) PPOs
B) HMOs
C) DMOs
D) ADDs
Answer: A

39) The primary difference between health maintenance organizations and preferred provider
organizations is that .
A) PPOs are less costly than HMOs
B) HMOs are more flexible than PPOs
C) HMOs offer mental health services while PPOs do not
D) PPOs allow patients to choose from a list of doctors without referrals
Answer: D

40) All of the following are the most likely reasons that mental health costs are rising
EXCEPT
.
A) widespread drug and alcohol problems
B) more mental health referrals by specialists
C) mental health claims triggering health care claims
D) laws requiring employers to offer mental health benefits
Answer: B

41) Which of the following sets minimum mental health care benefits?
A) Civil Rights Act
B) Employee Mental Health Act
C) Americans with Disabilities Act
D) Mental Health Parity Act
Answer: D

42) Which of the following requires that most private employers continue to make health
benefits available to terminated or retired employees and their families for a period of time?
A) FMLA
B) COBRA
C) OSHA
D) ADA
Answer: B

43) The Consolidated Omnibus Budget Reconciliation Act .

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A) prohibits an employer's health plan from using incentives to encourage employees to leave
the hospital after childbirth after less than the legislatively-determined minimum stay
B) limits the ability of health plans to set annual or lifetime maximums on mental and nervous
disorder benefits
C) requires that most private employers continue to make health benefits available to terminated
or retired employees and their families for a period of time
D) sets minimum requirements for protecting individuals' health-care data accessibility and
confidentiality
Answer: C

44) COBRA requires most private employers to continue to make health benefits available
to terminated or retired employees and their families for a period of time, generally
months.
A) 6
B) 12
C) 18
D) 24
Answer: C

45) Which of the following is NOT a true statement about the Protection and Affordable Care
Act of 2010?
A) Employers must offer health insurance coverage to employees who work at least 30 hours per
week.
B) Employers will be required to pay a 20% excise tax on high-cost health insurance plans.
C) Contributions to health care flexible spending accounts have been capped at $2,500.
D) Health plans with dependent coverage must expand eligibility up to age 26.
Answer: B

46) Which of the following represents the largest proportion of all reported disabilities?
A) respiratory diseases
B) cardiovascular diseases
C) mental illness
D) cancer
Answer: C

47) Which of the following best describes the purpose of the Newborn Mother's Protection
Act?
A) guarantee pension plans and health insurance coverage for female employees who have
recently given birth
B) prohibit employer health plans from using incentives to encourage employees to leave the
hospital after childbirth sooner than legally required
C) prevent employers from discriminating against women affected by pregnancy or childbirth in

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respect to benefits coverage

D) set minimum requirements for accessing the health records of female employees
Answer: B

48) All of the following are preventive services offered by employers as part of their wellness
programs EXCEPT .
A) anti-smoking incentives
B) low-cost immunizations
C) case management services
D) stress management
Answer: C

49) In which of the following can employers and employees deposit pretax wages to pay for non-
catastrophic medical expenses?
A) health maintenance organizations
B) health benefits funds
C) health savings accounts
D) deferred savings plans
Answer: C

50) All of the following are health care cost-control methods used by employers EXCEPT
.
A) requiring employees to pay high premiums
B) benefits purchasing alliances
C) requiring disability insurance
D) encouraging medical tourism
Answer: C
Chapter: 13

51) Which of the following provides lower rates for the employer or employee and includes
all employees regardless of health or physical condition?
A) workers' compensation insurance
B) group life insurance
C) disability insurance
D) pension plans
Answer: B

52) About how many million people work part-time in the United States?
A) 1
B) 5
C) 11
D) 19

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Answer: D
Chapter: 13

53) In addition to the funds contributed by employers, each state also contributes to funds for
workers' compensation.

54) In most states, workers' compensation benefits have no time limit, so injured employees may
receive monetary and medical compensation for the duration of their employment.
Chapter: 13

55) If an employee is injured at work due to a blatant disregard for company safety policies, the
company is not required to pay workers' compensation.

56) Employers are prohibited from inquiring about an applicant's past workers' compensation
history by the Americans with Disabilities Act.

58) The Consolidated Omnibus Budget Reconciliation Act requires the government to provide
health insurance to terminated or retired employees and their families through the Medicare
system.

59) The Medicare Modernization Act allows employers to establish tax-free health savings
accounts.

60) What policy issues must employers address when developing benefit plans? What
federal laws influence employers' pension and health plans?
Answer: In developing benefit plans, employers must address numerous policy issues including
Chapter: 13

61) As an HR manager, you need to control costs associated with unemployment insurance.
What are steps you can take to protect your employer from paying unemployment claims
for employees who were dismissed for inadequate performance?
Answer:
• Keep a documented history of lateness, absence, and warning notices
• Warn chronically late employees before discharging them
• Have a policy that three days' absence without calling is reason for automatic discharge
• Request a doctor's note on return to work after absence
• Make written approval for personal leave mandatory
• Stipulate date for return to work from leave
• Obtain a signed resignation statement
• Mail job abandonment letters if an employee fails to return on time following a leave
• Document all instances of poor performance

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• Require supervisors to document the steps taken to remedy the situation

• File the protest against a former employee's unemployment claim on time
• Use proper terminology on claim form and attach documented evidence regarding
separation
• Attend hearings and appeal unwarranted claim
• Check every claim against the individual's personnel file
Chapter: 13

62) Private employers forced to downsize are required to provide COBRA coverage, and some
firms offer dismissed employees severance pay. How do employers benefit from providing
severance pay to dismissed employees? How do employees benefit from COBRA?
Answer: Severance pay is a one-time payment offered when terminating an employee. There are
several reasons for a firm to offer severance pay. It shows good will to the employee. It is good
public relations. It is fair since most employees expect to receive notice in advance of an
employee leaving to offer the same sort of notice to the employee. It can protect the company
from litigation from disgruntled former employees. COBRA, Consolidated Omnibus Budget
Reconciliation Act, requires most private employers to continue to make health benefits
available to separated employees and their families for a time, generally 18 months after
separation. Although the former employee must pay for the coverage, it enables coverage to
continue without interruption until the individual finds a new job or purchases his or her own
health insurance policy.

63) Because health care coverage is one of the most expensive benefits employers provide, many
employers are trying to cut costs. What are some strategies for minimizing costs associated with
employee health care?
Answer: Employers are endeavoring to rein in health-care costs. Most cost-control efforts
should start by instituting methods for measuring and auditing health-care costs. One survey
found that although the industry standard for percentage of claims errors is 3%, the actual
percentage of claims with errors was about 6.3%. Several possible strategies include wellness
programs, on-site primary care, retaining cost containment specialists, offering health savings
accounts, high deductible plans, defined contribution health insurance plans, and accountable
care organizations (ACO).

64) For individuals born in 1960 or later, the full retirement age for non-discounted Social
Security benefits is .
A) 62
B) 65
C) 67
D) 70
Answer: C

65) Social Security offers all of the following EXCEPT .

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A) survivor's benefits for those insured under the Social Security Act
B) disability payments to employees who become totally disabled
C) tax refunds for retirees who are 55 and older
D) Medicare program administration
Answer: C

66) How is the Social Security program funded?

A) sale of government bonds
B) tax on employee wages
C) tax on homeowners
D) tax on luxury goods
Answer: B

67) Which of the following provides a fixed sum when employees reach a predetermined
retirement age or can no longer work due to disability?
A) workers' compensation
B) Social Security
C) pension plan
D) group life insurance
Answer: C

68) Taxes on employee wages to fund Social Security apply to all earnings up to . A)
$46,500
B) $63,700
C) $117,000
D) $124,300
Answer: C

69) Medicare provides a wide range of health services to people or over.

A) 55
B) 60
C) 65
D) 70
Answer: C

70) When an employer makes all of the contributions to the pension plan, the pension plan is
classified as .
A) qualified
B) non-qualified
C) defined contribution
D) non-contributory
Answer: D

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71) A plan that contains a formula for determining retirement benefits is known as a
.
A) defined contribution pension plan
B) defined benefit pension plan
C) cash balance plan
D) 401(k) plan
Answer: B

72) Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans
offered for each company he is considering. One company offers a pension plan in which the
company will make all contributions to the plan and will base his pension benefit on a formula
linked to his pay at the time of retirement and the number of years he was with the firm. This
pension plan is most likely classified as .
A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, defined benefit
Answer: B

73) Jenny must contribute at least 5% of her annual salary to her pension plan, and her employer
contributes a set amount as well. She is given choices regarding how the money is invested.
When she retires, the amount she has available will depend on how much she invested herself,
and the rate of return on the investments she chose. This pension plan is most likely classified as
.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, non-qualified
Answer: C
Chapter: 13

74) A plan in which the employer's contribution to employees' retirement savings funds is
specified is known as a _ .
A) portable plan
B) default investment plan
C) defined benefit pension plan
D) defined contribution pension plan
Answer: D

75) All of the following are characteristic of 401(k) plans EXCEPT .

A) categorized as a defined contribution plan

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B) deduction replaces Social Security tax

C) pretax salary deductions invested
D) considered a savings and thrift plan
Answer: B

76) Which of the following refers to a plan in which employees contribute a portion of their
earnings to a fund and the employer typically matches the contribution in whole or part?
A) group investment plan
B) 401(k) plan
C) deferred profit-sharing plan
D) employee stock ownership plan
Answer: B

77) All of the following characterize cash balance plans EXCEPT .

A) lacks portability
B) offers predictable benefits
C) considered hybrid pension plans
D) employees earn interest on contributed amounts
Answer: A

78) Which of the following requires that pension rights be vested and protected by the Pension
Benefits Guarantee Corporation?
A) Economic Growth and Tax Relief Conciliation Act
B) Employee Retirement Income Security Act
C) Job Creation and Worker Assistance Act
D) Social Security Act
Answer: B

79) Which of the following provides guidelines regarding what rates of return employers should
use in computing their pension plan values?
A) Employee Retirement Income Security Act
B) Job Creation and Worker Assistance Act
C) Social Security Act
D) Equal Pay Act
Answer: B

80) Social Security provides health benefits to terminated employees and their families for 18
months following the employee's separation from the firm.

81) A primary benefit of 401(k) plans is that payments made by employees into the plan are
pretax, so the employee pays no tax on those dollars until after he or she retires or withdraws the
money.

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82) There is no limit to the amount an employee can contribute pre-tax into a 401(k) plan each
year.

83) Portability makes it easy for employees who leave one firm to work for another firm to take
their accumulated pension funds with them.

84) The Pension Benefits Guarantee Corporation guarantees both defined benefit plans
and defined contribution plans.

85) What are the three types of benefits provided by Social Security?
Answer: Social Security provides retirement benefits, survivor's death benefits, and disability
payments. Retirement benefits provide income to those who retire at age 62 or after. Death
benefits provide monthly payments to dependents of the deceased individual regardless of the
individual's age at death. Disability payments provide payments to employees who become
totally disabled and to their dependents if they work and meet certain requirements.

86) What are vested funds? What is the difference between cliff vesting and graded vesting?
Answer: Vested funds are the money employer and employee have placed in the latter's pension
fund that cannot be forfeited for any reason. The employees' contributions are always theirs, of
course. Employers can choose one of two minimum vesting schedules (employers can allow
funds to vest faster if they wish). With cliff vesting, the period for acquiring a nonforfeitable right
to employer matching contributions (if any) is three years. So, the employee must have
nonforfeitable rights to these funds by the end of three years. With the second (graded vesting)
option, pension plan participants must receive nonforfeitable rights to the matching contributions
as follows: 20% after 2 years, and then 20% for each succeeding year, with a 100% nonforfeitable
right by the end of 6 years.

87) provide services like financial counseling, child care referrals, elder care referrals,
adoption assistance, mental health counseling, and life event planning.
A) Pension plans
B) Employee assistance programs
C) Family-friendly benefits
D) Benefit management systems
Answer: B

88) seek(s) to enable employees to balance their job and family responsibilities.
A) Sick leave
B) Pension plans
C) Work-life benefits
D) Benefit management systems
Answer: C

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89) Which of the following benefits is NOT classified as a type of family-friendly benefit?
A) sick leave
B) subsidized child care
C) on-site fitness facilities
D) elder care
Answer: A

90) Studies indicate that employee assistance programs most frequently provide help with
personal mental health issues and family problems.

91) Firms that subsidize day care centers are hoping to recruit employees, reduce absenteeism,
decrease turnover, and improve morale.

92) When employers offer domestic partner benefits to employees, it means that employees'
same-sex domestic partners are eligible to receive the same benefits as do the husband, wife, or
legal dependent of one of the firm's employees.

93) What are the key steps for launching a successful EAP program? Should firms offer EAPs?
Why or why not?
Answer: In either case, employers and managers need to keep several issues in mind. Everyone
involved with the EAP, including supervisors, secretaries, and support staff, must understand the
importance of confidentiality. Also, ensure files are locked, access is limited and monitored, and
identifying information is minimized. Be aware of legal issues. For example, in most states
counselors must disclose suspicions of child abuse to state agencies. Define the program's
purpose, employee eligibility, the roles and responsibilities of EAP and employer personnel, and
procedures for using the plan. Also, ensure the vendors you use fulfill professional and state
licensing requirements. For employers, EAPs produce advantages, not just costs. Employee
assistance programs can reduce absences by providing expert advice on issues like elder care
referrals.

94) Why are family-friendly benefits increasingly popular? Provide examples of family-friendly
benefits.
Answer: There are many trends that increase the value of family-friendly benefits. There are
more households in which both adults work. There are more one-parent households. More
women are in the workforce while also struggling to fulfill familial obligations. People are
working harder and longer with less time to manage life outside of work. Family-friendly
benefits can vary from organization to organization. Some examples include child care, elder
care, fitness facilities, sick child benefits and educational subsidies.

95) Which term refers to individualized plans allowed by employers to accommodate employee
preferences for benefits?

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A) variable pay plan

B) cafeteria benefits plan
C) matching plan
D) executive perquisite plan
Answer: B

96) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has
traditionally provided legislatively required benefits for its employees including Social Security,
workers' compensation, and unemployment insurance. In addition, Orion offers employees health
and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule.
Orion's top executives are considering the idea of adding a flexible benefits plan and
implementing a flexible work schedule.

Which of the following, if true, best supports the argument that Orion should offer its employees
a cafeteria benefits plan?
A) Orion lacks the resources to join a low-cost health insurance plan, so the firm belongs to a
pool with other businesses.
B) Some Orion employees have indicated that they would like vision insurance, while others
have no interest in dental insurance.
C) Orion offers its employees a PPO health insurance plan, but employees have
expressed interest in an HMO plan.
D) Orion outsources its employee benefits program, so employees go through the plan's
administrator when filing claims.
Answer: B

97) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has
traditionally provided legislatively required benefits for its employees including Social Security,
workers' compensation, and unemployment insurance. In addition, Orion offers employees health
and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule.
Orion's top executives are considering the idea of adding a flexible benefits plan and
implementing a flexible work schedule.

Which of the following, if true, undermines the argument that Orion should offer its employees a
cafeteria plan?
A) A survey of Orion employees indicates that the majority of employees are very satisfied with
the firm's current benefit offerings.
B) Orion experiences very few workers' compensation claims each year as compared to similarly
sized businesses in the Atlanta area.
C) Orion employee surveys indicate that most employees are interested in either 401(k) plans or
Roth IRAs as methods of saving for retirement.
D) Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration.
Answer: A

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98) Which of the following best explains why many businesses use employee leasing firms?
A) Firms save money by hiring part-time or temporary workers.
B) Investment opportunities are more plentiful and reliable.
C) Small companies are able to get better insurance rates.
D) Franchise owners can offer more flexible schedules.
Answer: C

99) Stephanie has opted to work from 7 am to 3 pm so that she can be home when her son
finishes school in the afternoons. Her company must offer for Stephanie to have this option.
A) shift work
B) flextime
C) telecommuting
D) compressed workweeks
Answer: B

100) Which of the following is an example of a compressed workweek?

A) Maxwell works from 7 am to 3 pm Monday-Friday.
B) Shannon works from 7 am to 5 pm Monday-Thursday.
C) Tom works from 11 am to 7 pm five days per week.
D) Bob works from 12 pm to 6 pm Monday-Sunday.
Answer: B

101) Which of the following occupations is commonly subjected to compressed workweeks?

A) engineer
B) attorney
C) teacher
D) pilot
Answer: D
Chapter: 13

102) Anne and Martha are both accountant supervisors at a large marketing firm. Anne works
from 7:00 a.m. until 12:00 p.m. each day. Martha takes over the same position at 12:00 p.m. and
works until 5:00 p.m. each day. Which of the following most likely describes this type of work
arrangement?
A) flextime
B) job sharing
C) work sharing
D) compressed workweek
Answer: B

103) Curt works at a computer firm that is experiencing financial difficulties. In an attempt to

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save money and prevent layoffs, the firm is enforcing a temporary reduction in work hours for
Curt's division. Curt now works 35 hours a week instead of 40. Which of the following most
likely describes this situation?
A) flextime
B) job sharing
C) work sharing
D) compressed workweek
Answer: C

104) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has
traditionally provided legislatively required benefits for its employees including Social Security,
workers' compensation, and unemployment insurance. In addition, Orion offers employees health
and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule.
Orion's top executives are considering the idea of adding a flexible benefits plan and
implementing a flexible work schedule.

All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT
which one?
A) What benefits are available to employees at Orion's main competitors?
B) What costs would Orion incur for switching to a cafeteria benefits plan?
C) How would a cafeteria plan alter Orion employees' Social Security benefits?
D) What effect would a cafeteria plan have on the coverage that Orion employees receive?
Answer: C

105) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has
traditionally provided legislatively required benefits for its employees including Social Security,
workers' compensation, and unemployment insurance. In addition, Orion offers employees health
and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's
top executives are considering the idea of adding a flexible benefits plan and implementing a
flexible work schedule.

Which of the following, if true, best supports Orion's decision to offer flextime to its employees?
A) Orion's single-parent employees are frequently late when arriving to work.
B) Orion allows some of its employees to telecommute at least one day each week.
C) Many Orion employees must conduct business while traveling to different locations.
D) Orion employs a large number of part-time employees, most of whom are near retirement
age.
Answer: A

106) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has
traditionally provided legislatively required benefits for its employees including Social Security,
workers' compensation, and unemployment insurance. In addition, Orion offers employees health

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and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule.
Orion's top executives are considering the idea of adding a flexible benefits plan and
implementing a flexible work schedule.

All of the following questions are relevant to Orion's decision to offer flextime and job sharing
options to its employees EXCEPT which one?
A) What do surveys indicate regarding overall job satisfaction among Orion employees?
B) How would the productivity level of Orion's employees most likely change?
C) What work schedule configurations are legal?
D) What is the average rate of employee absenteeism at Orion?
Answer: C

107) Flextime for most employees typically involves 1 hour of leeway before 9 a.m. or after 5
p.m.
p.m. workday. Therefore, the effect of flextime for most employees is to give them about 1 hour
of leeway before 9:00 a.m. or after 5:00 p.m.

110) When groups of employees accept a temporary reduction in work hours in order to prevent
layoffs, the employees are job sharing.

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